With the cannabis market gaining fast traction in the commercial world, several related services are cropping up in the market. However, with the future of the industry hanging by a thread, contradictory claims on these services are being raised as well. People started looking for how to get marijuana seeds in USA online and this is available widely.
The Cannabis Insurance Industry
Ever since certain states in the USA have legalised the sale and use of cannabis-related products such as cannabis seeds, cannabis oil, cannabis edibles, and other smoking-related products, there has been growing precedence on the service sector of this industry.
Firms that provide insurance against cannabis-related products started to grow in the market since the very first legal shops opened up in the states. These industries not only help the business owners but also defend the rights of consumers when it comes to cannabis-related products.
The Current Scenario
Initially, the cannabis insurance industry received a revolting welcome, given that most of the cannabis users were in the informal or unorganised sector. However, as states began to legalise more businesses dealing in cannabis products, the outlook of people changed.
Presently, states such as California and Colorado have legalised the opening of cannabis stores. This industry is expected to reach an economy of $60 billion worldwide by the end of the next decade. This opens up several opportunities for current insurers.
As a result, the service sector is looking to capitalise on this opportunity and make an early entrant in this ecosystem. However, the lack of clarity among the general public makes it difficult for them to make a reputation in the general market.
The Truth Behind the Cannabis Insurance Industry
The initial belief was that the claims raised by such insurance holders would be majorly concerning bodily harms where the harm would have been caused by ingestion of a cannabis-related product. This could be more often than not, as misuse of cannabis seeds or other products may result in some form of physical damage to the user.
While there are a decent number of such cases being filed in the court, the majority of the claims are related to manufacturing defects or contamination claims on several products.
Other practices such as misbehaviour, false advertisements, or deceptive business practices have been the highlight of high-class action lawsuits filed by the consumers. This shows a rising positive trend and makes a way for the positive growth of this industry.
John Donahue, president and CEO of Topa Insurance Co., recently highlighted the optimistic nature of the cannabis insurance industry in an hour-long Insurance Journal webinar, Cannabis & Insurance, “What You Need to Know about the Budding Business”.
As the world grows more open to the use of cannabis and its related products, several industries will open up along with it to support the infrastructure. Legalization is the only barrier that is stopping these industries from contributing to the world economy.
In a move which has given the industry hope, the Secure and Fair Enforcement (SAFE) Banking Act, a bill safeguarding the interest of cannabis companies, is slowly making its way through the parliament. The passing of this law will be a big win for the cannabis insurance industry.