New Insurance Coverage Options Address Cannabis Business Gray Areas

MMD Insurance Services addresses adequacy of insurance coverage for the Cannabis Community, designing solutions and implementing coverages designed to protect cannabis businesses owners from denied claims.

Sacramento, CA (January 17, 2014)—With all the legal gray area surrounding cannabis, either as a medicinal product or a state-approved retail product, many questions remain unanswered, particularly regarding insurance claims. Stories abound of landlords or legitimate users being denied claims because their tenants were growing a controlled substance or their homes were raided by Federal authorities. Yet, with the explosive growth of the cannabis industry, and subsequent state requirements, manufacturers and producers of cannabis and cannabis products are increasingly accountable to consumers, should injury occur.

MMD Insurance Services has, since the earliest days of legitimized cannabis, worked with carriers and the cannabis community to address these lapses, striving to ensure that legitimate businesses, with legitimate claims, are protected in the event of a loss. As of January 2014, in concurrence with the arrival of retail cannabis sales in Colorado and Washington state, MMD Insurance Services offers new coverage options to cannabis businesses, Products Completed Operations with Health Hazards and the removal of “marijuana and its derivatives”, explicitly and in writing. “Most other policies don’t have exclusions to cannabis nor do they make any mention of cannabis,” says Mike Aberle, MMD Insurance Services National Director. “These are issues with no legal precedent,” adds Aberle. “Could a carrier claim Federal Law over State Law? Perhaps, but by removing this exclusion, in writing, manufacturers and producers have at least one more legal leg to stand on.”

“MMD Insurance Services has always tried to spell out very clearly what our programs cover,” reiterates Aberle. “With our endorsement, the insured, for the first time, will have the option to have the exclusion to “marijuana and its derivatives” removed in writing.” MMD Insurance has worked with the top laboratories, medical practitioners, growers and producers across the United States to evaluate cannabis risk. Through years of research and industry collaboration, MMD has found what Aberle calls a “balance of good and bad risks” by maintaining solid underwriting while shaping the program to address an inconstant marketplace. This coverage is evidence of that. MMD Insurance continues to look to appointed brokers, lawmakers, and leaders of the cannabis industry to develop future coverages and improve the protections afforded cannabis business and professionals.
About MMD Insurance Services

Endorsed by the American Alliance for Medical Cannabis (AAMC), MMD Insurance Services develops specific insurance programs for marijuana retailers, cultivators, manufacturers, dispensaries, collectives, cooperatives, caregivers and professionals across the nation. MMD provides complete lines of insurance solutions for insurance agencies in all states permitting the use of marijuana for recreational or medicinal purposes, with filings in all 50 states. Fore more information about insurance coverages, agent appointments or for confidential quotes, contact MMD Insurance Services National Director, Mike Aberle, via email at, or by phone at 888-844-6222 ext. 4808. Insurance applications and additional information is also available online at