The American Association of Insurance Services announced Tuesday it is expanding its Cannabis Businessowners Policy program into Colorado, following success with the industry-specific insurance program in California.
The Lisle-based not-for-profit insurance advisory organization, which is governed by its member companies, said the Colorado program will become effective Aug. 1. The program, called CannaBOP, provides property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and private cannabis testing facilities and laboratories.
AAIS partnered with actuarial consulting group Merlinos & Associates to analyze market exposures and develop rating guidelines specific to the cannabis industry, the company said in a release. It introduced CannaBOP to California last year at the request of the state's Insurance Commission, where it was well received.
AAIS, which has been providing services for the property and casualty industry since 1936, said its mission is to bring CannaBOP and other cannabis-specific programs to insurers in all states with established cannabis markets, and intends to develop similar programs for Alaska, the District of Columbia, Maine, Massachusetts, Michigan, Nevada, New Jersey, New York, Oregon, Vermont, and Washington, and more.
Illinois legalized marijuana use for medical purposes in 2013, and is currently considering legalizing adult recreational use.