The nationwide quarantines have affected the statuses of many businesses by classifying them as essential or non-essential. Fortunately, for cannabis businesses many states have designated the industry’s operations as essential. This could mean a new relationship is forged between the cannabis and insurance industries, as these businesses are now deemed beneficial to the public good, but questions still loom.
Cannabis and Insurance: A Complicated Relationship
The cannabis industry has fought for national legalization and validation of its products and services for a number of years. This has led to problematic issues on how to insure growers and retailers, due to ongoing federal restrictions. With the new essential business status, doors could open for insurance coverage opportunities. The hurdle is whether the industry as a whole can overcome its perceived history.
Stigma and Reality
Cannabis products are often lumped into a category of illicit drugs. However, in recent years, CBD oils have provided numerous medicinal benefits that improve the lives of people. This recognition helped garner the essential business label. Businesses now want to capitalize on this important recognition and craft a new image with the cannabis insurance industry and in general. However, there is worry this newfound CBD popularity may lead to it being, wrongfully, hyped as a miracle drug and malpractice lawsuits could ensue, further damaging insurance prospects.
The cannabis industry still has work to do with image building, yet with public demand, reported health benefits and positive national attention, a brighter future is likely on the horizon.