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WASHINGTON, D.C. – Cannabis has been legalized in 42 states, but not federally. This legal disparity has created a haphazard regulatory environment for marijuana and cannabis-related businesses and services. Federal prohibitions conflict with state laws, leaving legal enterprise in limbo and requiring them to exist in the shadows, unable to access tools necessary for their success. For example, insurance companies wishing to serve cannabis-related businesses face legal liability for providing the insurance they need to those businesses to operate.
As members of the Senate Banking, Housing, and Urban Affairs Committee, U.S. Senators Kevin Cramer (R-ND) and Ruben Gallego (D-AZ) introduced the Clarifying Law Around Insurance of Marijuana (CLAIM) Act to ensure legal, law-abiding cannabis businesses in compliance with their state’s relevant regulations have access to insurance products. Specifically, the CLAIM Act ensures safe harbor for any insurance company which provides insurance products to cannabis-related businesses.
“Much like marijuana businesses are barred from using bank accounts, they are also locked out of insurance markets,” said Cramer. “Businesses, as we know, obviously assume risk [because] that’s part of being in business. But the risk for cannabis companies that operate in states where it’s actually legal is especially high. The CLAIM Act makes sure insurers can offer their commercial products to regulated marijuana-related businesses without fear of federal prosecution.”
“In states that have legalized marijuana, including Arizona, legitimate cannabis businesses should have the same access to insurance coverage as any other business,” said Gallego. “I’m proud to partner with Senator Cramer to introduce this commonsense, bipartisan fix.”
Click here for bill text.