“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.”
New Jersey Sen. Robert Menendez (D) has introduced legislation to ensure cannabis businesses can access property, casualty, and title insurance. The Clarifying Law Around Insurance of Marijuana (CLAIM) Act, has bipartisan support in the Senate including Democrat Jeff Merkley (OR) and Republicans Rand Paul (KY) and Kevin Cramer (ND) as co-sponsors.
The bill would perform a similar function for the insurance industry as it relates to the cannabis industry as the SAFE Banking Act would for financial institutions – giving the sector explicit approval to serve cannabusinesses.
Cannabis businesses operating under state laws that have legalized recreational or medical marijuana are often denied access to the insurance market because insurance providers could be prosecuted or face penalties under federal law. Without access to insurance products such as property, casualty and title insurance, businesses remain vulnerable, and employees, customers, and the community face safety risks. Businesses can also be denied bank financing if they do not have the proper insurance.
The CLAIM Act would: