US insurance consultants Alternative Risk Strategies (ARS) has implemented a captive insurance arrangement for a large cannabis company, it has announced. The deal, through its ARS Captive Program, includes placement of $10 million of directors and officers’ captive insurance coverage.
ARS claims the program enables cannabis companies to afford increased D&O coverage at significantly lower rates than through traditional commercial insurance.
“We are pleased to have designed and implemented this effective captive insurance solution for our client in the cannabis industry,” said ARS managing director Eric Rahn.
“The interest in our Captive Program has been remarkable, but was not unexpected, as cannabis companies struggle to find affordable and adequate levels of insurance for their business needs and realise attracting and retaining management talent is related to adequate insurance.”
The program is part of an arrangement ARS has with an unnamed AM Best “A” rated insurer. This provides ARS with maximum flexibility in designing and insuring captives in high-risk and highly regulated industries, such as cannabis, construction and transportation, the company said.
Alternative Risk Strategies (ARS), Agreement, D&O, Cannabis, Insurance, Reinsurance, Eric Rahn, North America