Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

NEW! | Medical Marijuana Dispensary & Doctor Insurance

Published on April 4, 2017

Wholesale medical marijuana dispensary insurance CA Abram Interstate

There is no denying that the Marijuana industry is large, and growing. In California, weed has been a fairly accepted part of pop culture for decades, but beyond that, it’s been an accepted part of medical community for nearly as long. Now that medical marijuana has been legal for medical use in California for over 20 years (since Prop 215 passed in 1996), there is a large user-base, which is about to expand with our recent recreational-use law passing.

A Fortune article last year outlined how the Marijuana industry is growing and is projected to grow over the course of the next four years as more states, like California, legalize recreational marijuana:

While the drug remains absolutely illegal on the federal level, the tide of public opinion has been moving in favor of legal marijuana for years, according to national polls. A handful of states could become the latest to allow the sale of recreational pot following expected votes in November. Four states already have legalized recreational marijuana, and a total of 23 states have legalized medical marijuana.

Well-established medical pot markets in states like California still account for much of the country’s legal marijuana sales, but recreational marijuana sales is expected to help fuel the cannabis market’s soaring growth over the next few years, says ArcView. It projects that adult-use pot sales will account for more than half (53%) of the overall market by 2020. That would represent growth of more than 1,150% for recreational sales over the next four years.

The huge jump in adult-use sales last year coincides with the first full year of recreational marijuana sales in Washington, which launched its legal recreational market in July 2014, as well as the beginning of legal sales in Oregon last fall. Meanwhile, 2015 recreational sales in Colorado had already increased by almost 68% year-over-year after only 11 months.

But the Insurance Industry has been slow to open our doors to marijuana risks. With the coming recreational marijuana dispensaries, though, our options have opened up. Right now, before recreational marijuana risks get here, you can get your foot in the door to a burgeoning industry by insuring medical marijuana dispensaries and the doctors who prescribe it.

If you’re wondering if you have a market for this where you live, check out these stats:

In 2011, San Francisco County had the highest number of registered cannabis use patients at 17812, roughly 30% of the state’s total. Marin County had the next highest, at 4841 patients, followed by Alameda (3918), Riverside (3775) and Los Angeles (3609) (via Marijuanadoctors.com).

That’s where the highest number of registered marijuana-use patients are located, but as of the end of the first quarter of 2016, there were 2,756 recorded medical dispensaries in California — so even if you live elsewhere, there’s still a market for you to seize.

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As California begins to have recreational dispensaries open as well, the industry revenue is projected to boom. Make your way into this niche insurance market now with our Medical Marijuana Insurance Product below.

Medical Marijuana Dispensaries Insurance Product Highlights:

  • Professional and General Liability Coverage
  • Medical marijuana dispensaries
  • Doctors who are prescribing medical marijuana
  • E&O coverage available for testing & consulting  for the marijuana industry
  • No farmers/seedsman type risks
  • Submit an application, and loss history if available to begin.

 Find medical marijuana dispensaries and doctors near you that may be prospective insurance customers by using weedmaps.com.

Submit Your Medical Marijuana Risk HERE Now

Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for Personal Lines Insurance, Commercial Lines Insurance, and Agribusiness Insurance in California and surrounding areas.