The increasingly profitable commercial marijuana industry is starting to attract a few more market entrants, including several Lloyd’s of London syndicates.
Wellness Medical Protection Group, a Chicago-based unit of Creative Edge Nutrition, is now offering coverage of up to $2 million per occurrence and $2 million aggregate to segments of the commercial marijuana industry.
Written through various Lloyd’s syndicates, which were not identified, the policies cover risks like theft and bodily injury with a typical $5,000 retention. Professional Program Insurance Brokerage is the managing underwriter for the program.
Wellness Medical Protection Group President Edward Kuhn attributed the decision to enter the market to “a lot of premium potential.”
“You could be looking at premium as high as $25 million in the next 12 months,” Kuhn said.
This insurer interest hasn’t always been there, however. As an independent agency owner specializing in covering marijuana operations since 2009, JB Woods of Parker, Colo.-based Greenpoint Insurance has seen market appetite fluctuate greatly over the years.
“When I first started out, it was only boutique underwriting groups that were willing to step out on a ledge,” Woods told
Insurance Business. “In the last years, I’ve seen more interest from very, very large groups. It’s pretty interesting because they wouldn’t touch this stuff five years ago—nobody would.
"Now all of a sudden, it’s funny how—with the money flowing—major groups are interested in marijuana."
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