The Huffington Post is reporting
California’s licensed marijuana business owners are now able to purchase commercial insurance for the first time, the state insurance commissioner announced Thursday.
Golden Bear Insurance Company was approved to begin offering commercial insurance to state-legal cannabis businesses earlier this week, Erik Olsen, a spokesman for the provider, confirmed to HuffPost.
The company is the first commercial insurance provider for marijuana businesses in the state, but commissioner Dave Jones hopes that number grows.
“Consumers who visit cannabis businesses, workers who work there, businesses who sell products to or rent property to cannabis businesses, and the investors, owners and operators of cannabis businesses all should have insurance coverage available to help them recover when something goes wrong just as any other legalized business does,” Jones said in a statement.
Legal marijuana businesses have long struggled to find insurance providers who will cover their businesses, due to the plant’s continued illegal status at the federal level. But some insurance providers have begun to provide policies to marijuana businesses in states that have legalized marijuana for recreational or medical purposes.
California produces vast amounts of marijuana and has done so for years. In 1996, it became the first state in the nation to legalize medical marijuana. Now, more than 20 years later, 28 other states have also legalized cannabis for medical purposes. Eight states, including California, have also legalized the plant for adult recreational purposes.