Continental Heritage Insurance Co. Offers Cannabis Surety Bonds in California, Ohio
Earlier today, we were speaking with an insurance professional about doing an article on insurance in the cannabis industry.
Our only requirement: it cannot be boring.
Then, like manna from heaven, this from The Street:
And that's not all....
"...a new surety bond approval from the California Department of Insurance is giving the state's cannabis industry a push in the right regulatory direction. The department approved a surety bond issuance from Continental Heritage Insurance Co. Continental is also offering surety bonds to licensed cannabis businesses in Ohio."
We feel like we've struck gold.
Let's be clear - this is not just about insurance. It represents the emergence of the cannabis on the macroeconomic stage. For example:
"When it comes to U.S. cannabis businesses, Canada has a competitive edge as medical marijuana is legal at the federal level, and recreational use will likely be legalized this year... Consequently, institutional capital is flowing into Canadian cannabis businesses...."
But institutional money (really big money) is not flowing into American cannabis yet. The risk of tangling with the federally illegal industry is keeping the big money on the sidelines.
By approving the Surety Bond, the California insurance department is drawing a states-rights line in the sand, and offering massive and courageous support to a state industry that anticipates providing $1 Billion in taxes in a few short years.
"Cannabis businesses should have insurance coverage available to them just like any other California business," Insurance Commissioner Dave Jones said in a Feb. 21 news statement.
"As Insurance Commissioner, my mission is insurance protection for all Californians, which includes insurance for California's legalized cannabis businesses. I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market."