Ups and Downs of Insuring Tribal Cannabis

1 minute read

34 states have legalized marijuana use, either recreationally or medicinally. Writing policies for marijuana companies is difficult as is, but companies owned or associated with Tribal Nations have agents facing even more hurdles.

Tribes have a big stake in the cannabis industry. In California, 35 of 109 federally recognized tribes operate enterprises in legal cannabis. While there is plenty of room to grow, only a few carriers support the industry.

An explanation for the lack of carrier support are the laws revolving around Tribal Sovereignty, or the right of Native Americans or Alaskans to govern themselves. Insurers worry Tribal Sovereignty will be raised as a defense in the claims process.

Despite these extra hurdles and concerns for insuring tribal cannabis companies, the opportunity is undoubtedly present. Some experts in the field see the cannabis market, although small for now, could be the next economic driving force for Tribal Revenues - akin to what casinos were like in the last decades.

All Information from Insurance Journal