Legal Cannabis Sales Continue to Spread
On January 10, 2023, Connecticut began the first round of sales of recreational cannabis at existing medical marijuana establishments throughout the state, less than two years after the corresponding bill was signed into legislation, making Connecticut the latest state to legalize retail sales of the drug for recreational use. The state expects as many as 40 dispensaries and dozens of other cannabis-related businesses to eventually open by the end of 2023.
Industry officials estimate the new businesses to create more than 10,000 jobs in Connecticut as well as generate hundreds of millions of dollars in new revenue over the next couple of years. One of the pivotal goals of the legalization of recreational marijuana use was to create a regulated, safer product for consumers.
As the American cannabis industry continues to expand, mature and evolve throughout much of the country, it has become more evident recently that there is desperate need of more backing of insurance outlets and other forms of financial protections that most other U.S. commercial sectors are readily afforded.
Domestic life insurance companies have yet to substantially embrace the cannabis industry and fail to allow any kind of financial indemnification insurance on marijuana businesses themselves due to federal government objectives. Even more-liberal markets like Lloyd’s have refrained from offering business coverage to cannabis companies.
Petersen International, in partnership with a specialty-market carrier, has engineered some appropriate solutions for those seeking insurance despite their exposure to the cannabis industry. We are able to offer high-limit term death benefits to marijuana companies for business insurances including key person coverage, business loan coverage as well buy/sell insurance. These business insurance plans are simplified-issue, requiring no intrusive medical exams, blood draws or urinalyses. And they can be underwritten and approved relatively quickly which helps address the often short contract timeline constraints required by lenders and investors on startup and expanding businesses. Additionally, underwriters are open to the consideration of permanent total disability benefits on top of the death benefits.
The Petersen International program allows for policy premiums to be paid by credit card which is typically helpful to cannabis businesses that have historically found it difficult to acquire banking representation and corporate checking accounts. Petersen International is the country’s main resource for key person insurance solutions for marijuana companies. To learn more about these products, give us a call at (800)345-8816.