Cannasure Appears to Position itself as the Premier Cannabis Insurance MGA and Wholesale Broker

Cannasure Patrick

Linkedin Patrick McManamon

Cannasure  Insurance Services appears to be heading in a different direction from their retail insurance operations with their recent announcement to become a licensed MGA and wholesale broker to the cannabis industry.  According to their press release, the insurance carrier they have aligned themselves is California based Topa Insurance Company.  We have little experience with this insurance carrier.  The initial reaction from other industry members has been neutral.   

According to their website, Cleveland based Cannasure was started in 2010 by Patrick McManamon whose family has a long history in the insurance industry.  Cannasure is a strategic partner of The Arcview Group and recently secured funding from The Krauter Group an insurance brokerage and private equity firm.  According to the website CB Insights, The Krauter Group made a $500,000 investment.

Other Cannabis MGA’s and Wholesalers Likely to Respond Quickly

This move by Cannasure will put more pressure on other cannabis insurance programs that have been operating in the space to improve their coverage offerings and pricing in order to compete particularly as California heats up. This is a normal reaction we’ve seen when California based Next Wave Insurance had one of the more comprehensive insurance program at one point in time particularly with their crop and product liability insurance offering.  That changed as Next Wave  scaled their operations, the existing insurance carriers responded by expanding their lines of business. 

Clearly, the two cannabis wholesalers are going to be competing ferociously in California for market share.   MGA’s and Wholesale Brokers will continue to seek business from professional cannabis insurance brokers with experience in the industry as these programs scale to avoid unnecessary losses as a result of broker negligence. 

What does this mean for Retail Insurance Brokers? 

Retail insurance brokers choosing insurance carriers on behalf of their clients must be due diligent with each underwriting group in order to obtain accurate information.  The insurance industry is notorious for transferring risk to the weakest link.  Retail insurance brokers must guard their clients and their agencies from this occurring.   In addition, Retail Insurance Brokers will need to demand better response times from their wholesale brokers as this apparently has been a real issue for certain groups.   

Cannasure Insurance Services Press Release 

CLEVELAND, Jan. 30, 2018 /PRNewswire/ — Cannasure Insurance Services (Cannasure), the premier cannabis insurance MGA and wholesale broker, announced today it will launch a comprehensive coverage program to support the cannabis industry.

“We are excited to announce that Cannasure recently finalized the development of a cannabis program that will offer all lines of coverage to medical and recreational business owners,” said Patrick McManamon, CEO of Cannasure Insurance Services. “Our program is backed by Topa Insurance Group, a leading boutique property-casualty insurer and will provide enhanced and comprehensive coverages. Initially, the program will be offered on a non-admitted basis; however, we are exploring admitted opportunities in target states.”


The Cannasure program will offer the following coverage lines: Property, General Liability, Products Liability, Crop and Excess Liability. The program is designed to support the primary industry operations, which include: Dispensaries, Cultivators, Processors/Manufacturers, Ancillary Businesses, Landlords and Testing Laboratories.


“The cannabis industry is evolving at an unprecedented rate, and because of this so are the industry-specific risk factors and operational demands,” McManamon said. “Since we opened our doors in 2010, Cannasure has been in the trenches with clients understanding their business, challenges, opportunities as well as the regulatory requirements. This firsthand accounting enabled us to partner with Topa, an ‘A-‘ A.M. Best-rated carrier that has truly taken the time to understand this industry and is committed to bringing forward relevant coverages (terms and conditions) that support the ever-changing cannabis industry. Because of this, we are excited to launch our program for new business submission effective February 1, 2018.”


The program will be managed by Kieran O’Rourke, Director of Underwriting, of Cannasure’s MGA division.


“Overall, Cannasure continues to provide robust access to coverage solutions for all aspects of the cannabis industry, whether it comes from our proprietary program or our wholesale operation,” McManamon said.


Cannasure Insurance Services ( is a leading cannabis MGA and wholesale broker. Cannasure is a full-service insurance group providing leading-edge solutions to cannabis business owners in the U.S. that include cultivators, dispensaries, processors and products manufacturers, testing laboratories, landlords and ancillary businesses for retail insurance agents and brokers. Located in Westlake, Ohio, Cannasure is licensed in all states where legalized cannabis is offered (medical and recreational) and provides a broad range of solutions that includes, but is not limited to, General Liability, Product Liability, Auto (Primary/Excess), All Risk Property, Inland Marine, Stock Throughput, Professional and Management Liability, Umbrella and Workers’ Compensation.


Topa Insurance Company is one of the wholly owned subsidiaries of Topa Insurance Group, a boutique insurance holding company based in Calabasas, California, which provides wholesale insurance solutions. Other subsidiaries include Alphyn Universal Insurance Solutions (CA), Dorchester Insurance Company (USVI), NevPac Reinsurance (BVI), and Topa Insurance Services (USVI). Topa Insurance Group is focused on underwriting profit, operational excellence and agility for continuous growth. For more information about Topa Insurance Group, please visit