Exploding lights is a Hot issue for insurance companies covering cannabis

Exploding lights is a Hot issue for insurance companies covering cannabis

Nervous insurance carriers offering checklists and recommendations meant to reduce the next grow fire

Cleveland based Cannasure Insurance Services is offering an industry first check list for cultivators to help reduce the chance of exploding lights.   A checklist is unique since it offers tangible recommendations on a weekly, monthly, and yearly basis. 

Why are they doing this? 

The material from exploding grow lights will cause plastic trays used to contain cannabis plants to ignite.  The damage from these events is a nightmare for the business and insurance carriers.  The damage can lead to millions of dollars in property damage with plants destroyed, soot filled ventilations systems, unusable ballasts, and inoperable electrical systems.   Worst case scenario is the building burns down and lives are lost.    

Recommendations by Cannasure include daily awareness of buzzing sounds from ballast, lights flickering, and lights that start in a delayed manner.  Before buying lights a conversation with the manufacturer to discuss failure rates is worth the time.  A red flag warning occurs when the lighting manufacture will not disclose or discuss their failure rates.  This is an excellent information to help determine if a manufacturer is worth the risk.  

Other carriers will list their recommendations on the quote

The list includes light fittings and lams are according to the operating instructions, position lighting to avoid particles from igniting combustible material, and replacing bulbs appropriate for the ballast.  


Grow Light Catastrophic Recommendations

Insurance risk too high when certain grow light combinations cause the most problems   

According to Canopius US Insurance, a 100% led lighting system is the gold standard for reducing possible insurance  claims.  If you’re not LED, then be prepared to answer a series of questions on the type of ballasts and lighting manufacturers being utilized.   

The one question to result in a automatic declination of your insurance request is if metal halide bulbs are used in high pressure sodium ballasts. The combination of these two products is problematic because of  electrical incompatibility.  In fact, the underwriting manual warns underwriters “The Leading Cause of Fire Losses in Cultivation Facilities Comes from HID Grow Bulb/Ballast Incompatibility.”

Between check lists and recommendations Cannabis insurance carriers are more assertive in their underwriting and recommendations to reduce the chance of claims being made.  Rightfully so, they are worried.  

 

 

   

 

You Cannasure a 180 Change is Coming for Cannabis Insurance

You Cannasure a 180 Change is Coming for Cannabis Insurance

Cannasure Insurance Services Acquired by One80 Intermediaries

Change is coming for the cannabis insurance industry. 

Cannasure Insurance Services (“Cannasure”) has evolved from a retailCannasure Logo insurance broker to a wholesale broker specializing in cannabis and hemp insurance coverages over the past 10 years.  A wholesale broker represents the insurance carrier as opposed to a retail broker representing the customer. 

Knowing Cannasure has its roots firmly planted as a retail broker they have been innovative with their product offerings.  However establishing an efficient relationship that requires quick turnaround and high volume has been a challenge.

Cannasure has now been acquired by One80 Intermediaries according to this press release and change is likely coming.

Quoting times should improve for cannabis insurance companies who need a quick response

Currently it takes 7 to 10 days plus to receive a quote from Cannasure.  The Boston based company One80 Intermediaries appears to have underwriting offices located throughout the United States including Canada. 

This presence should likely help Cannasure with reducing the amount of time it takes to quote knowing a local office is available to serve retail insurance brokers specializing in this segment.

Future of Cannabis Insurance might be through online quoting platforms

One80 Intermediaries is able to quote online a variety of business classes such as special events, liquor stores, and Truckers to name a few.   This could be what’s in store for cannabis insurance.  This would greatly reduce the amount of time it takes for retail insurance brokers to turnaround quotes and possibly eliminate lengthy supplemental and acord applications that choke the quoting system. 

Simple cannabis operations with 1 or 2 locations who need basic general liability and property coverage would be perfect candidates for online quoting.  

Expansion into workers compensation, directors and officers, and transportation lines

The cannabis industry has been void of robust product offerings.  Currently, most workers compensation insurance is through assigned risk pools.  Directors & Officers is offered by a small number of carriers, and commercial automobile is practically a monopoly held by one company.

According to the One80 Intermediaries website they appear to have a substantial experience and business practice in these areas.

This would be good for the cannabis industry to have access to more products and services.

 

One80 Intermediaries Current Product Offering

Cannabis Product Offering