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There’s no denying that across the US, the marijuana industry is growing, whether it be for medical or recreational purposes. As the legal industry is relatively new in its various forms, marijuana-related businesses are coming into being and are in need of the normal things that go into running a business. The insurance industry, however, is having an issue with marijuana businesses – namely that they are considered illegal under federal laws.
Marijuana businesses are in search of underwriting by insurance companies to ensure the safety of their business, however, the general agreement in the insurance industry is that they will not cover marijuana-related businesses while marijuana is still federally prohibited. The insurance industry isn’t the only industry in this bind — banks also face the issue of marijuana businesses wanting to open accounts, however, many banks refuse the business due to federal regulations.
Some marijuana businesses are getting around the insurance question by obtaining policies that are written for non-marijuana businesses, hoping that this will cover them should an incident occur. Few insurance companies are offering policies that cover marijuana-related business.
This is yet another case of the marijuana industry jumping the gun. Not only has medical marijuana been legalized on the state level in many areas without the proper methods – going through trials, obtaining FDA clearance, etc. – but businesses are now being started without basic fail-safes to not only protect their businesses, but also their employees.