Risk & Business Magazine Hardenbergh Insurance Group Magazine Winter 2018 | Page 29

CANNABIS
CANNABIS
P
ot, weed, grass, ganja, Mary Jane . . . whether you know
it or not, these are all street names for marijuana. For
all of our lives, marijuana by any name has been illegal—
until now. Since taking office in January 2018, New
Jersey Governor Phil Murphy has expanded the Medical
Marijuana Program and has made it legal to many residents in the
Garden State. Patients in the program now number around 33,000
and approximately 500 new patients are being enrolled each week.
In addition to expanding the medical marijuana bill, lawmakers
are expected to vote on a recreational marijuana bill. This bill
would permit legal possession and personal use of small amounts of
marijuana as well as set up a commercial market.
WHERE WILL PATIENTS GET IT?
To keep up with the growing demand, the New Jersey Department
of Health (DOH) seeks to issue six more “seed to sell” licenses,
doubling the amount of current medical marijuana dispensaries
to 12. These operations would grow, process, and sell medical
marijuana and would follow the same regulations as the original six.
The Newest Crop
In The Garden State
As the medical marijuana program is expanded and the potential
for legalized recreational marijuana is on the horizon in New Jersey,
there will be even more groups looking to take part in this rapidly
growing industry. Hopefully, as the industry expands nationwide,
there will be less uncertainty and admitted carriers will enter the
marketplace to take advantage of this
tremendous opportunity.
Holly
DeLorenzo
joined
Hardenbergh Insurance Group in
2013. She serves as an insurance
broker and outsourced risk
manager to mid-sized commercial
clients. Mrs. DeLorenzo’s area of
focus is in the cannabis, healthcare,
construction, and manufacturing
industries.
BY: HOLLY DELORENZO
The DOH has also proposed regulations in June that, among other
things, would allow the state to issue separate licenses for growing,
processing, and retailing.
If these rules are adopted, the state could start accepting
applications for the separate licenses shortly after the applications
for the six new providers.
WHAT’S NEXT?
Many speculate that cannabis will be the next big thing since the
tech boom of the 1990s. But with all industries in the infancy stage,
tremendous opportunity is met with tremendous uncertainty and
risk. Risk that admitted insurers are staying away from for the time
being.
BUT WAIT . . . HOW DO YOU INSURE POT?
The current legal uncertainty surrounding the marijuana industry
has made it challenging to insure and has kept admitted insurers
hesitant and not quite ready to get into the game.
Most of the solutions to date have come from the excess and surplus
(E&S) lines marketplace.
Insurance coverages available in the E&S marketplace today for
cannabis businesses include the basic coverages: general liability,
property, and auto liability coverages. Products liability and excess
liability coverage are also available. Crop coverage for indoor
crops at any stage of the growth cycle (“from seed to sale”) can be
purchased as well.
And because cannabis is a data-driven and cash-only operation,
cyber liability, ransom, and kidnap policies are also available.
NOT JUST INSURANCE.
RISK MANAGEMENT
SOLUTIONS.
FOR YOUR HOME, YOUR CAR,
YOUR VALUABLES — YOUR
PEACE OF MIND.
call 856-489-9100
or visit www.hig.net
©2018 Selective Ins. Group, Inc., Branchville, NJ. Products vary by jurisdiction,
terms, and conditions and are provided by Selective Ins. Co. of America and its
insurer affiliates. Details at selective.com/who-we-are/selectives-affiliated-insurers.
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