California insurance commissioner Dave Jones has approved the filing of the state’s first commercial insurance company that covers the cannabis business.
With the approval, Golden Bear Insurance can now begin writing policies and offering coverage for cannabis business owners, spokesman Erik Olsen told Reuters.
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Major insurers have typically shied away from covering the cannabis industry out of fear of reprisal from federal authorities.
Earlier this year, Commissioner Jones launched an initiative to encourage commercial insurers to fill the insurance coverage gaps of the cannabis industry.
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“Our mission remains insurance protection for all Californians, which includes insurance for California’s legalized cannabis businesses and customers,” Jones said.
Recreational cannabis is currently legal in eight states across the US. In California, the production and possession of marijuana was legalized just last year. As the industry expands and more states legalize cannabis, it is expected that more insurers would welcome clients in the recreational drug business.
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