The American Association of Insurance Services has expanded its admitted Cannabis Businessowners Policy program in Nevada.
The Nevada Division of Insurance approved AAIS’s CannaBOP on Dec. 24, 2019.
The cannabis industry continues to grow and mature as states legalize and expand medicinal and adult-use programs each year. Sales of cannabis in the U.S. are expected to top $15 billion in 2020. Nevada alone accounted for around $700 million in sales in 2019 and is expected to reach $1 billion by 2022. The need for admitted cannabis insurance is a natural by-product of this growth market, an AAIS announcement on the new development states.
CannaBOP offers a comprehensive product for Nevada carriers looking to capitalize on a growing demand for insurance programs in the Silver State. The CannaBOP program includes a package policy containing both property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, and manufacturers. It comes supported by rules and loss costs developed with actuarial consulting group Merlinos & Associates, Inc.
Since CannaBOP’s inception in 2018, the program has been approved in California, Colorado, and now Nevada. AAIS intends to develop similar programs for Alaska, the District of Columbia, Illinois, Maine, Massachusetts, Michigan, New Jersey, New York, Oregon, Vermont, Washington, and others. Program updates, including a multi-state base form for use in surplus lines markets, supplemental coverage and exclusion endorsements and alignment with AAIS’s commercial umbrella/excess program, are available.
AAIS serves the property/casualty insurance industry as a national nonprofit advisory organization governed by its member insurance carriers. AAIS delivers tailored advisory options including policy forms, rating information and data management capabilities for commercial lines, inland marine, farm and agriculture and personal lines insurers.
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