“Current federal law prevents these small business owners from getting insurance coverage, and without it, they can’t protect their property, employees, or customers,” Menendez said in a statement released Tuesday. “We can solve this problem with legislation that allows insurance companies to provide coverage to these enterprises without risk of federal prosecution or other unintended consequences.”
Menendez noted that New Jersey recently expanded its medical cannabis program and that Gov. Phil Murphy, who as a candidate pledged to legalize cannabis for adult use, has already endorsed the insurance bill. In a statement, Murphy said: “It is our responsibility to make sure that businesses associated with this life-changing medical treatment are treated similarly to other medical service providers.”
A number of niche, so-called surplus-lines insurers currently do offer insurance products to the cannabis industry, but those policies tend to be expensive and available only to certain elements of the cannabis industry.