Skip to main content

Specialty Markets Well Positioned to Find Insurance Solutions for Cannabis Sector

Cannabis is a rapidly growing industry and manufacturing and selling the substance for recreational purposes — in all forms — has been legal since last October. But because of government-mandated insurance requirements, it has proved challenging for Canadian cannabis businesses to find the insurance coverage they need.

cannabis-insurance


The cannabis sector is not new in Canada, after all the substance has been legal for medical purposes since 2001. And in many ways, that paved the way for recreational cannabis insurance products. But what is new is the manufacturing, distribution and retail of recreational cannabis.

While the federal government wrote cannabis laws and regulations, it gave provinces and territories the authority to decide how the product is sold, including where stores can be located, how they are operated, who is allowed to sell cannabis — and how much insurance businesses have to carry.

For the cannabis sector, manufacturers and retailers alike, procuring insurance is still a challenge. An added complexity was the legalization of edible cannabis products in the fall of 2019. Edible cannabis can include adding the substance to a variety of products ranging from beverages to cosmetic products, creating larger risk exposures and adding to the wide variety of risks businesses operating in the sector already have to contend with.

In Ontario, the provincial government imposed legal requirements for recall limits of $15 million. Required minimum commercial general liability for retailers is also costly. These requirements can pose a struggle for brokers to place insurance for their clients as the product and its availability is still maturing in the Canadian insurance market.

As the insurance industry catches up with the need for cannabis insurance, many brokers are looking to specialty markets to find solutions to their cannabis clients’ insurance needs. At CHES Special Risk, underwriters help support brokers and work collaboratively to identify unique risk exposures and engage insurance carriers to find inspired solutions to the complex insurance needs of the cannabis sector.

To find out more about our bespoke insurance coverages and how a CHES Special Risk policy can better respond to your clients needs, please speak to your CHES underwriter or email us at quotemehappytoronto@chesspecialrisk.ca


Labels:

Comments

Post a Comment

Popular posts from this blog

CHES Special Risk Inc. Supports Canadian Constructions Industry

Roofing Contractors Insurance as Provided by CHES Special Risk Inc. Supports Canadian Constructions Industry Ottawa, Ontario – CHES Special Risk Inc. today emphasized their capabilities of their Marketing leading Roofing Contractors Insurance Program. “There are a substantial number of different roofing systems that have been developed by the Roofing Contractor to respond to the needs of the Architects and Engineers that design and Build many of today’s structures, whether they are Commercial, Residential or Sporting facilities”, said Douglas Everett, President of CHES Special Risk Inc. “Many applications are done at extreme height, and often on existing buildings where there are not only considerable risks involved in the construction of these roofs, but also with the surrounding risks of Property Damage and Bodily Injury” Here are just some of the different Roofing Applications that we can consider at CHES Special Risk Inc: Shingle, Wood shingle, Shake (shingle), Sla...
Post a Comment
Read more

What is Jewellers Block insurance?

 A standard Jewellers Block insurance policy will provide coverage for a wide range of risks, tailored to your business. Our exclusive Jewellers Block policy is developed specifically for jewellers, and offers 100 percent Lloyds of London security with market-leading cover. Commonly covered risks include: Theft , including shoplifting, burglary and robbery Accidental damage Business interruption due to fire, robbery or other incident Property whilst it is on your premises, on loan or display in an exhibition, and in a transport vehicle. Terms and conditions apply. There are things that a policy won’t cover — like employee dishonesty or unexplained loss — but for the most part, Jewellers Block insurance can be as comprehensive as you need it to be. What if I need more cover? There are a wide range of available extensions and additional benefits for jewellers who need more cover for the unique risks they face in their business. You may want to consider additional cover if you a...
1 comment
Read more

CHES Special Risk launches miscellaneous professional risks E&O offering

CHES Special Risk  has unveiled its latest offering: an errors & omissions (E&O) insurance solution for miscellaneous professional risks . The insurance offering, available through brokers, is for industries such as (but not limited to): fork lift training, photography, recruitment consultants, event planners, interior designers, tour operators, social media consultants, property managers, trade associations, health & safety inspectors, shipping and freight consultants, and forestry consultants. “We have access to some new markets from Lloyd’s of London that are exclusive to us,” said CHES Special Risk president and CEO Gary Hirst. “This allows us to offer errors & omissions insurance in canada for a whole range of industries which are difficult to place in Canada.” CHES Special Risk senior underwriter Ashley Scandlan added that many businesses offering consultancy services are typically underinsured, since they lack awareness of their own risk exposures. “For any ...
Post a Comment
Read more