The insurance industry is notoriously slow to adapt to changes in laws. When it comes to highly regulated industries, such as the Colorado marijuana industry, there is no room or time for errors. However, traditional insurance markets aren’t onboard for partaking in this newfound industry. But in order to open a marijuana business, or any business for that matter, life insurance policies are a must. This has posed a problem for many Colorado businesses trying to get into this booming industry.
Marijuana growing and retail operations are high risk, and require large amounts of collateral to start. Banks and investors require life insurance as loan collateral and life insurance to fund partnership succession plans through buy/sell agreements. With 28 states having legalized state medicinally, and seven recreationally, there are millions of dollars from investors waiting to be put into start up grow operations or other marijuana-related businesses. Without investors, it’s harder for a business to start up. But in order for a business to start up, business life and disability insurance is required. It’s not just small isolated group of businesses who are encountering road blocks in obtaining business life insurance. It’s an industry-wide problem.
Finding an insurance carrier in the Colorado marijuana industry poses many challenges. Traditional markets today aren’t keen on this industry quite yet. Fortunately, international underwriters are more open to the idea of working with prospects in this industry. The Hinerman Group is proud to offer international life insurance and disability income underwriters who can help provide business life and disability insurance policies. These policies can benefit either owners of marijuana businesses, or key individuals working in the industry. The industry is difficult to navigate, but with the Hinerman Group on your side, you can trust you’re in good hands for your Colorado marijuana business life and disability insurance. Contact us today to learn more.