The Current State of The Industry
The demand for cannabis insurance continues to grow each year. As of now, 38 states and Washington, D.C. have legalized medical cannabis, and 19 states and D.C. have legalized recreational, adult-use cannabis. The conflict between state and federal law makes compliance a minefield for cannabis-related businesses (CRBs). CRBs face both the commonplace risks that other companies face and risks unique to the industry. For example, CRBs must be cash-based in most states because they cannot depend on relationships with banks (due to increased risk and federal statute that still holds cannabis as a Schedule 1 drug) and store large amounts of cash and stock, which engenders the potential for theft.
Finding adequate insurance coverage is one of the most significant challenges facing CRBs but the number of organizations willing to cover cannabis businesses is growing. According to a report from 2021, the number of insurers providing cannabis insurance coverage grew from just 6 in 2020 to over 30 in 2021.
Simply finding a policy which will cover a cannabis operation is not enough. Many underwriters overseeing new programs may lack expertise and experience in the cannabis industry. Having policy language explicitly designed for the cannabis industry, without excessive exclusions, is of utmost importance in ensuring sufficient coverage, as is working with experienced industry professionals.
McGowan Wholesale Cannabis Insurance Products
McGowan Wholesale Cannabis is a leading provider of program and brokerage markets in the cannabis industry. Our team specializes in placing property and casualty lines of coverage for all categories of cannabis and ancillary businesses. We provide comprehensive coverage for licensed cultivators and growers, extractors and processors, wholesalers, dispensaries, and retailers. McGowan Wholesale Cannabis provides insurance coverage in all 50 states.
Our key offerings include:
- Business Income
- Crop & Finished Stock
- Equipment Breakdown
- Excess (Casualty & Property)
- Executive Liability
- General Liability
- Products Liability
- Stop Loss and Health Benefits
- Workers Compensation
- Exclusive Dispensary insurance offering
Optional Coverages include:
- Property & Liability Enhancement Endorsements
- Employment Practices Liability
- Product Withdrawal
- Budtender Professional Liability
- Cyber Liability
- Employee Benefits Liability
McGowan Wholesale provides full-spectrum coverage for the entire cannabis vertical. No matter the operation—cultivation, processing and extraction, wholesale distribution, retail dispensary, or even hemp or CBD related businesses—our team provides a one-stop shop for coverage and turnkey solutions.
Our exclusive Dispensary program, only available through McGowan Wholesale, offers unique coverage for agents and brokers. The program offers property, general premises liability, and product liability coverage for cannabis dispensaries, with an add-on for integrated cultivation. Our dispensary program is the most comprehensive coverage for dispensaries currently on the market.
Our online submission portal makes the process even easier by creating a seamless experience. We provide significantly shorter applications and comprehensive coverage forms with enhanced insurance options. Our in-house rating and underwriting ensure accurate and competitive premiums, making our nationwide services even more valuable. Additionally, we offer loss prevention and control and risk management services that utilize innovative and proprietary risk prevention programs.
On the whole, risk assessment and quotes can take much longer in cannabis than in other industries. Our team is involved in hands-on risk assessments that get you quotes much faster than other providers, often within 72 hours
Insurance Products for Agencies, Brokers, and Insureds
At McGowan Wholesale Cannabis, it’s our mission to make things easier for advisors and insureds in the cannabis space. We cut through red tape, remove roadblocks, and seek to make things easier for an already challenging market. Our team has the experience to serve as advisors for CRBs, agencies, and brokers seeking to enter or expand their footprint in the cannabis insurance space. We put our relationships with our carrier partners to work to get the best solutions for our customer’s cannabis insurance problems.
Team of Experts
Unlike other insurers just entering the cannabis space, our team is deeply experienced in both the insurance and cannabis industries. Each of our team members is a problem solver, relationship builder, and advisor uniquely suited to guide your company through the ever-changing cannabis insurance landscape.
Thomas Cioletti, Program Manager – Thomas has diverse experience in the insurance industry as an agent, underwriter, and product analyst for commercial and personal lines. He brings insights to the TRICHOME program and aims to create sustainable insurance products that benefit policyholders.
Russ Johnston, EVP Sales Marketing – Russ is a sales and marketing executive with a proven history of driving revenue growth, expanding customer reach, and building strong relationships. His expertise includes directing marketing campaigns, executing sales strategies, and managing customer relationships across all 50 states.
Rachel Staph, Cannabis Director – Rachel is a deeply experienced Broker with diverse skills, including expertise in Professional Liability, Property and Casualty Insurance, Insurance, Allied Health, and Commercial Insurance.
Sandy Datcher, Program Underwriter – Sandy has broad experience in the insurance and cannabis risk management arenas and has worked with cannabis dispensaries and manufacturers to customize the risk management policies within their operations. Sandy excels in working with agents to find appropriate solutions for their clients.
Get in touch to learn more.