Conifer Insurance Services, in collaboration with Skyward Specialty Insurance Group, has introduced Cannabis Select, a new insurance program designed for multi-state cannabis operators (MSOs) and larger cannabis businesses. This program complements Conifer’s existing Cannabis Essentials insurance, which caters to smaller cannabis businesses, dispensaries, and local operations.
Program Details
Cannabis Select provides high-limit, non-admitted coverage to dispensaries, cultivators, and manufacturers operating across state lines. The coverage includes up to $25 million in property protection and $5 million per occurrence in general and product liability. In contrast, Cannabis Essentials offers up to $5 million in property coverage and $1 million/$2 million in liability coverage.
Both insurance programs are backed by AM Best A-X rated carriers and are available in legal cannabis markets nationwide. The development of Cannabis Select was led by Kathleen Brown-Hurtado, president of Cannabis Specialty Programs at Conifer, and Jason Scheurle, vice president of the unit.
Industry Context
The cannabis insurance sector was valued at approximately $2.32 billion in 2024 and is projected to reach $6.7 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.14%. This growth is driven by increasing legalization across states and the corresponding need for insurance coverage in various segments of the cannabis industry.
Challenges in the Market
Despite the growth, the cannabis insurance market faces challenges, including a hardening trend expected to persist through 2024 and into early 2025. This trend is influenced by ongoing regulatory developments and the evolving nature of cannabis products. The industry also grapples with financial strains, including $3.8 billion in delinquent payments attributed to high borrowing costs.
Company Background
Conifer Insurance Services has served the cannabis industry for over 10 years. In 2024, it was acquired by Bishop Street Underwriters, allowing it to expand its underwriting capabilities and incorporate AI tools to better serve agency partners and cannabis businesses.
