“Really when it comes to cultivation, processing, there is a bit of a hiccup, it seems in the overall market space, I think in terms of capacity from a property perspective for a total package solution,” said Keith Distel, casualty team leader in Admiral’s Chicago office and vice president of cannabis underwriting.
Distel’s comment on capacity was in answer to a question from moderator Charles Pyfrom, chief marketing officer at CannGen Insurance Services.
Distel blamed the lack of capacity on the continued status of cannabis as a controlled substance, making it illegal in the eyes of the government.
And when you tie a SPAC to it, it’s very difficult to place coverage, especially because a lot of the times these are being transitioned from a privately held company to being traded on multiple exchanges.
“And we’re having issues with certain placements when it comes to equipment breakdown.
But uninsured EPLI claims, wage and hour, or other related issues, I’ve seen a number of those coming through, and thus far, unfortunately, all of them have been uninsured.” The take up on EPLI is still incredibly low, he said.