California Insurance Commissioner Dave Jones said Tuesday that California Mutual Insurance Co. has become the first insurer in the state approved to provide coverage to property owners who rent out space to cannabis businesses.
Lessor’s risk coverage provides liability and property insurance for commercial property owners who lease building space to commercial tenants, said the department in its statement. Specific commercial activities and businesses addressed by this coverage include cannabis labs, product manufacturing, cultivation and dispensary operations.
Steve Miller, president of Hollister, California-based California Mutual, said the coverage being offered is the same as the insurer offers to other types of businesses.
“Prior to this, we probably would have gotten off the risk if the tenancy was related to the cannabis industry. Now, with the permits and policies in place, we feel more comfortable with it,” he said. The insurer has not written any of this coverage so far, he said.
Mr. Miller stressed the policy will provide coverage just for the landlord, not for the cannabis business itself.
Mr. Jones has been continuing to urge insurers to cover the state’s cannabis industry amid reports that President Donald Trump’s administration will not crack down on states allowing the use of marijuana.