Securing insurance coverage for cannabis operations can be challenging as prices rise in a hardening market, but it can be particularly difficult to buy coverage from directors and executives, experts say. companies are complicating factors, according to participants who spoke Thursday in the second of a series of webinars on the cannabis sector produced by Business Insurance .
While discussing alternative risk transfer, Matt Grimes, Vice President of the Cannabis Special Group at Hub International Ltd. in Chicago, says the brokerage firm is introducing a new product for directors and officers of the cannabis sector.
To address what it sees as a "lack of coverage of directors and officials, especially for listed companies," Hub has created a tort vehicle that "uses issued shares as collateral to provide an increased boundary structure. "
Moving to Al There are questions from listeners concerning prisoners," says Grimes, "prisoners are sometimes a good idea. If you spend more than $ 1
The webinar began with an overall look at the D & O coverage market, which has undergone" a period of prolonged hardening over the past two years, "said Ben Sibthorpe, Denver-based Vice President of CannGen Insurance Services LLC. "On the private company side, we have seen prices increase by 15% to 30% compared to the previous year, and that is a significant multiple of that with the public company D&O."
The best way to describe D&O for cannabis is "a difficult market in a tough market – very solid and difficult to operate in. It is very difficult to buy limits up to and above $ 10 million," said Sibthorpe, adding that Fewer than ten insurance companies currently write such coverage.
Sebastian Alia, Deputy CEO of the Hudson Insurance Group, described the cannabis D&O market as "a tough market for steroids."
Mr. Alia said cannabis "adds as many additional uncertainties" as a new industry with little available data and regulation offering "so much gray area."
Information about other sessions in the series can be found here.