A The bill introduced in Congress, which would allow insurers to cover cannabis-related deals without fear of criminal prosecution under federal law, should ease restrictions on the burgeoning sector significantly if law enforced.
The bipartisan law clarifying the 2021 Marijuana Act, which provides a safe haven for insurers covering risks in states where the federally banned drug is legal, could help boost insurance markets for cannabis operators and businesses, industry observers say open in their supply chains.
“Any federal law that specifically recognizes the cannabis industry as legitimate would significantly increase the capacity of the insurance industry,” said Justin M. Lehtonen, vice president of wholesale broker Worldwide Facilities LLC in Los Angeles.
Insurers and others “are looking for a way to support this business,” he said.
The cannabis industry “definitely needs some kind of federal regulation,” said Jay Virdi, Toronto-based chief sales officer for cannabis insurance and risk services at Hub International Ltd. in the US and Canada.
According to the text of the law, which was introduced in March and is an update of the unsuccessful 2019 legislation, the intent is to “