Another challenge is that there continues to be limited
claims experience and a relatively limited number of
lawsuits related to liability claims or challenging policy
forms and coverage terms, explains Fanoe.
“This uncertainty is a large part of why many insurers are wary
of entering this space or are entering this space only with major
exclusions. As time goes on and the legal issues become resolved,
as well as rating plans and forms becoming more standardised, this
issue should largely be fixed,” he says.
Dixon adds: “While federal illegality poses some unique challenges,
the risks and exposures are pretty much the same as you would
see in any other business. The coverages needed for the cannabis
industry are the same as any other business.
“There are some federal protections in place (the Rohrabacher-
Blumenauer amendment, which expires on September 30, 2018
medical only, and the FinCEN guidance medical only). There are
also a few bills in Congress that would address the federal issues if
they pass through both houses and are signed by the President.”
King says the challenges in this space are
abundant, and that Emerald Risk Solutions’
main mission is to help educated cannabis-related
businesses on the captive solutions available, and how
they can potentially work in conjunction with commercial
coverage to remove as much risk as possible.
“This is a sophisticated movement of bringing one of the oldest
plants known to humans back into full production to help with both
medicinal and industrial uses,” says King.
“The trend is that more Americans are coming out of the ‘cannabis
closet’ and into full disclosure that they understand this plant has
amazing benefits and uses (on the hemp side).
“Tobacco farmers in America, who grew a crop that now isn’t as
desired are switching to growing hemp (the ‘twin sister’ of marijuana,
both are derived from Cannabis sativa) and the laws around hemp
are hopefully changing this year to remove it from the list of illegal
drugs (it doesn’t contain the psychoactive qualities of marijuana, but
In Utah, we understand that companies are sophisticated and able to take greater control of
protect against any company’s dynamic business environment.
Utah is recognized as an innovative state, fostering and supporting innovative solutions. If you
are looking for an on-shore domicile to form a captive insurance company, a Utah domiciled
captive is the choice for you, where Risk Management, Cost Control, and Regulation connect.
www.captiveinternational.com US Captive 2018 13