Lloyds and Marijuana Insurance

I get questions about Lloyds and Insuring the Cannabis Industry on a regular basis. It can be from a new client in Colorado to an old one in Washington asking about renewals. (The two questions that I have had this week).

There are actually quite a few articles on the subject talking about how horrible this event is however I have found the experience refreshingly old school. I tend to refer people to industry Articles about Lloyds leaving the business.

Today was the first time that I got a hard copy letter from the carrier stating the end of Lloyd’s and Marijuana Insurance. Check it out:

It had little effect for my clients because the previous February, I switched over to Hannover as a primary carrier. I work with multiple companies. It is an ongoing process to see what company can do for different categories of clients. I have literally told client’s if they find a company that is better than the one I am using then let me know as I am more than happy to add on to my offering.

Insurance has always been about the customer. Picking good insurance involves picking a good broker.

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.