Posts Tagged ‘commercial insurance’

Statewide Covers Medical Marijuana…Nationwide

December 14th, 2010 by Iris | Comments Off | Filed in business insurance, insurance news, insurance specialists

If you live in one of the fifteen states where medical marijuana is legal, and are concerned about the cost of being involved in the medical cannabis industry, you can rest a little easier. Last March, an insurance company based in Rancho Cordova, CA launched the first nationally available coverage designed specifically for the medical marijuana industry.

As reported in the Sacramento Bee, Mike Aberle, a commercial insurance agent with the firm – Statewide Insurance – and the national director of its new Medical Marijuana Specialty Division said, “Given the growth in the industry, I think it’s only a matter of time” before other states allow medical marijuana. Now that we can offer (services) in all 50 states, we can start the minute they go legal, without delay.”

According to Aberle, the program covers all of the various aspects of the medical cannabis industry, including dispensaries, general liability, workers’ compensation, equipment breakdown/damage, property/product loss (including pot spoilage), auto insurance (for vehicles that transport medical marijuana) and other related operations.

It was California voters who took the first steps into medical marijuana as an industry back in 1996 when they initially approved Proposition 215, which allows physicians to recommend cannabis for the treatment of cancer, chronic pain, AIDS, glaucoma, and other chronic illnesses which could benefit from treatment with cannabis. It’s estimated that there are now over 2,000 dispensaries in that state.

Aberle began forming Statewide’s Medical Marijuana Division (MMD) in 2007, and since then it has provided insurance to clients in California, Colorado, New Mexico and Rhode Island. Last year, he began expanding the national program. Premiums, he said, range from $650 – $25,000 a year, with different variables affecting the cost. A typical policy has premiums between $1,000 and $4,000.

A lobbyist with California Capitol Solutions in Sacramento told the Bee that Statewide’s MMD program is a “milestone in an industry that needs insurance protections for everyone in the distribution chain, from growers of the product to those that use it. He also said, “It’s very big, especially right now with public safety. Safety protocols need to be put into place.”

Del Real said that he represents medical cannabis dispensaries and other segments of the medical marijuana industry throughout California. He also said that the group with the fewest protections is the growers, asking, “How do we move out of residential areas and into commercial and industrial space?” He continued, “A lot of people are trying to get their minds around the cultivation of medical marijuana.”

According to Del Real, governments throughout California have decided numerous issues like whether insurance for dispensaries will be required. He said that there was, “… a big thing of catching up going on. Each community is passing its own laws, and that becomes problematic.”

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Fireman’s Fund Expands Green Construction Coverage

August 31st, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists

Just in time for back-to-school, Fireman’s Fund Insurance Co. has announced the expansion of its commercial green insurance product line to include educational institutions, including colleges and universities, trade and vocational schools, and public and private elementary and high schools.

With the Fireman’s Fund Green-Guard commercial building insurance, educational institutions are able to replace standard materials and systems with green alternatives after a loss. If a total loss is claimed, Fireman’s Fund will pay for the construction of an entire building that is green-certified, and properties which are already so-designated will receive a discount of 5 percent on regular insurance coverage premiums. In addition, if a loss is claimed, the Fireman’s Fund program protects schools’ investment into coverage by allowing new certification at one level above the certified green building level in place before the loss or damage.

In the words of Stephen Bushness, senior director of emerging industries at Fireman’s Fund explained, “To meet the emerging sustainability needs of schools, Fireman’s Fund will now offer comprehensive green insurance coverage. Whether the schools have built green buildings, made green renovations or want to rebuild green in the event of a loss, Fireman’s Fund provides the premier insurance solutions for these financial and environmental investments.”

Why expand the program? Fireman’s Fund says that public schools spend roughly $6 billion a year on energy, making it the second highest expense after salaries. Colleges and universities spend about $2 billion/year on their utility bills, according to data from the EPA. The United States Green Building Council (USGBC) has conducted research which has found that a green building typically uses 30-to-50 percent less energy and 30 percent less water than a building constructed with standard materials and systems. Lower utility bills can allow schools to save as much as $100,000/year which can then be put into actually educating students.

Going green, says the Fireman’s Fund, also helps schools attract and retain high-quality students and faculty members. In fact, the Princeton Review found that 68 percent of high school students are looking for a green campus in their search for their best fit college.

“Colleges and universities have long been on the leading edge of reducing greenhouse gas emissions, energy costs and their overall impact on the environment. A green campus not only conserves energy and makes a statement on climate change, it also reduces utility costs which can make a dramatic impact on a school’s bottom line,” Bushnell said.

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