A recently formed insurance agency is offering the commercial marijuana industry general liability and related insurance coverage on a surplus lines basis through several Lloyd's of London syndicates.
Chicago-based Wellness Medical Protection Group, a unit of publicly traded Madison Heights, Michigan, firm Creative Edge Nutrition Inc., is offering up to $2 million per occurrence and $2 million aggregate coverage to segments of the commercial marijuana industry, Wellness Medical Protection Group President Edward Kuhn said Friday.
He said the policies are being written for three segments of the commercial marijuana industry: growers, manufacturers and processors; dispensaries; and support businesses, such as laboratories.
The policies, which are written through various Lloyd's syndicates, typically have a $5,000 retention and cover risks including theft and bodily injury, Mr. Kuhn said.
Mr. Kuhn did not identify the syndicates involved. The managing underwriter for the program, Novato, California-based Professional Program Insurance Brokerage, would not reveal the syndicates involved in its proprietary program. Lloyd's had no comment.
The agency also offers related policies, including coverage for governmental actions, which has a $5,000 limit.
He said the agency is seeking domestic insurers to underwrite the coverage, which is being marketed under the name CannaProtect.
“There's a lot of premium potential” in the market, Mr. Kuhn said. “You could be looking at premium as high as $25 million in the next 12 months” industrywide, he said.
The agency also offers risk management consulting, he said.
“We have an experienced staff of law enforcement people and security specialists,” and can also offer legal advice on issues including compliance and regulation, he said.
A separate unit of Creative Edge plans to grow 1.3 million pounds of marijuana in Windsor, Ontario, Mr. Kuhn said.
The parent company has nutritional supplement and hemp production divisions as well, he said.