Cannabis Risk Purchasing Groups

Manicuring Insurance Coverage for Unique Industry Through Collective Bargaining

As all operators in the cannabis industry know, the unique legal status of cannabis makes all aspects of running a cannabis business more complicated. Insurance coverage is no exception.

Insurance forms that are not specifically written with cannabis in mind almost always contain provisions that could bar coverage entirely in the event of a loss. Those that are written specifically for the cannabis industry tend to offer a far more narrow scope of coverage and many loopholes through which insurers can wiggle out of covering significant claims. Very few carriers are willing to insure the industry at all, and no one cannabis company is yet paying high enough premiums that carriers are willing to negotiate terms. The result is that policies are generally under-inclusive and non-negotiable. 

Horst Legal Counsel is disrupting this status quo by helping cannabis businesses take advantage of existing legal methods to create leverage with their carriers through collective bargaining in insurance placement. By pooling the industry's purchasing power into risk purchasing groups ("RPGs"), cannabis businesses can put more pressure on insurers to reduce rates and--more importantly--improve the terms of coverage, making it more likely that future claims will be covered. 



Horst Legal Counsel has years of experience negotiating on behalf of policyholders to secure the best insurance policies available for their unique business needs.  Jason Horst is among the experts in California on the intersection of insurance law and the cannabis industry.  Jason sits on the Insurance Committees for both the California Cannabis Industry Association and the National Cannabis Bar Association.  With the increased negotiating leverage that results from the use of RPGs, Jason can bring his talents to bear in negotiating for greater clarity, more coverage, and fewer exclusions in the policies his clients purchase. Moreover, Jason works with his clients to ensure that the coverage they purchase forms part of larger operational risk management strategies designed to help sustain their businesses long into the future.  

Current Cannabis Insurance Market Dynamics

Cannabis Insurance Market Dynamics with RPGs