Alternative Risk Strategies (ARS) has unveiled a new insurance solution for the cannabis industry.
Businesses in the cannabis industry are experiencing particularly hardened market conditions, including substantially higher premium rates and higher deductibles and retentions, for several important coverage lines, including directors’ and officers’ (D&O) insurance.
Responding to this problem, ARS launched Cannabis Captive Solutions for qualifying cannabis companies. It said it will help cannabis businesses lower their costs and improve cash flow.
Cannabis Captive Solutions offers qualifying companies access to D&O, professional and products liability, excess liability and other broad form coverages.
ARS manages the process of analysing its client’s insurance needs, setting risk management goals and objectives and forming a captive private insurance company where appropriate. It coordinates with service providers such as accounting, legal and insurance brokers and helps form a risk management committee of outside experts to report back to the captive owners.
Eric Rahn, managing director at ARS, said: “Presently public and private cross border (Canadian/USA) cannabis companies are categorised as high-risk in a highly-regulated industry. Insurance companies presently servicing the industry continue to charge huge premiums for coverages that are a critical foundation to protecting their business operations and attracting and retaining valuable officers and directors.”
ARS Cannabis Captive Solutions gives businesses access to the coverages they need to protect their business, transfer risk, and reduce insurance costs over a short period, he added.
Alternative Risk Strategies, Cannabis Captive Solutions, Eric Rahn