Friday, July 24, 2015

California Marijuana Insurance

I have been running Insurebud for a few years now and have had a few requests to expand coverages into other states by friends in the Cannabis Industry. I got in this business to help out a few friends in the Seattle area and get them some inexpensive insurance to cover their dispensaries. With out advertising, I recieve a couple of requests a year that I have had to say no as I focused on Washington State.

We have two rules about insurance.

1. It has to be affordable.
2. It has to be usable.

This changed about a week ago, I had a professional call me with a large enough operation in California, that I can afford to expand. When you are a small business, everything takes time and money. If you don't spend money then you spend time. Effective 07/23/2015 Insure Bud is open for business in California.

I am looking forward to finally being able to bring information to the 420 College in California. George Boyadjian has been a huge influence in gathering professional people and teaching about this industry that it would be awesome to see him on his home turf. If you haven't attended one of his events then you are missing some of the best training that I have ever encountered for the Marijuana Industry.

If you are expecting me to use a Lloyds of London policy then think again as we moved from using them last February. In May there was a memo from a Lloyds executive stating that they were going to stop writing new policies for the Cannabis Industry and renew on a case by case basis. To build an industry, I only use products that support the industry. In six months the client responses have been 100% positive.

I have picked a rockstar of whole sale insurance company that is continually improving the product. I have secured a premium loan company that is providing good rates so the entire premium does not have to be paid up front. I have also found little things along the way such as Packaging companies, Point of Sales Debit Cards and other secondary industries that can improve your access point and your products. If you are profitable then my job is well done.

Monday, July 13, 2015

I have been asked what about Lloyds of London, too many times during the last week. Here is some clarity:

1. Yes, in May 2015, Tom Bolt wrote to the U.S Syndicates that it will no longer write for the Cannabis Industry. He is the Director of Performance Management so when he wrote: “Any policies of this type that are currently in force should not be renewed and no new business should be written. Existing quotes issued before today should be notified to your Syndicate Underwriting Performance account executive who will consider on a case by case basis whether the quote may be honoured,” it should be taken seriously.

2. In February 2015, Insurebud began transitioning its new and renewal customers to new carriers. The new carriers are higher rated. There is a wide selection of coverages. When I compared pricing directly, the new carriers were saving the clients hundreds of dollars. The response time has been better with one quote taking a two hour turnaround time when I needed a rush.

3. When shopping for your marijuana insurance for your business. You want to look for a couple of things:
a. Is your agent knowledgeable with the product line? A poorly written application can cost you money.
b. Are they adding on fees? If they are going through multiple brokerages then there are multiple fees. Yes, there are some policies that my agency takes home $80.
c. Do they offer discounts? Some agencies offer discounts and are resources to your business.
d. Are they a part time player or are they serious? The same person that does your auto policy might not be the best for your Cannabis policy. A change in law or even how an insurance policy can cost time and money to your business, an agent is another resource about your industry.

4. With Lloyd’s leaving the business, there have been fears that there will be an increase in cost. I have not found those fears to be justified. I would rather have one good carrier than ten lousy ones. There are probably 2000 policies in the United States so your common carriers such as Allstate, State Farm, etc. will probably never have a policy for the marijuana industry. They don’t want the fund an insurance pool nor do they want the risk associated with a Schedule 1 Drug.