Cannabis insurance bill introduced in US House, Senate
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Bipartisan legislation that would provide protections for insurers of cannabis businesses was introduced in the U.S. Congress on Thursday.
The Clarifying Law Around Insurance of Marijuana Act of 2021 would provide a federal safe harbor for insurers covering cannabis businesses where sale of the drug is legal.
A majority of states have legalized the sale of medical and/or recreational cannabis, but sale of the drug remains illegal at the federal legal. The discrepancies between state and federal laws have deterred many insurers from offering coverage to cannabis-related businesses.
The legislation is sponsored by Senators Bob Menendez, D-N.J., Rand Paul, R-Ky., and Jeff Merkley, D-Ore., and Representatives Nydia Velázquez, D-N.Y., and Steve Stivers, R-Ohio.
Similar legislation was introduced in 2019.
The legislation is supported by several insurance trade associations. Frank Nutter, president of the Reinsurance Association of America, said in a statement: “It is essential that state-legalized cannabis-related businesses and individuals have basic protections that insurance provides so that they can safeguard their property, employees and customers.”
