The US cannabis industry is booming, and shows no sign of slowing down anytime soon. As new states enter the market, the incredible success for business soars, and the unpredictability of the industry it can be hard to find insurance providers not only who know the industry, but also who understand your business’s needs. The great news is that in q2 and q3 we saw an increase in insurance carriers who are able to underwrite in the cannabis industry. Drew Taylor joins us to share tips and tricks on insurance in the Cannabis Industry.
Video Transcription
Harry Brelsford 0:05
Hey 420MSP Harry Brelsford back with Drew the guy I go to for cyber, not cyber insurance but cannabis insurance conversations. How you doing?
Drew Taylor 0:17
Good. Hey, how are you?
Harry Brelsford 0:19
Good. Good. Yeah, we talked to you last quarter we’re back. what’s what’s news? What’s news in your world as far as you’re concerned?
Drew Taylor 0:27
Yeah, I we touched touched on this a little bit before the show. But you know, one of the things in the insurance marketplace. Sometimes troublesome is it tends to move pretty slowly. So I won’t have too many updates, like, like a lot of your other visitors do. But there are a couple updates that I that I can share. So you know, one of the things we always look for, and one of the things we always fight for, for our clients is more capacity in the space. So you know, more carriers that are offering insurance. And it seems like q, q2 and q3, were pretty favorable when it came to insurance capacity. So that’s pretty exciting for us.
Harry Brelsford 1:10
In capacity would mean that there’s the capitalization necessary to underwrite cannabis related companies, whether they touch the flower or not, that I’m trying to translate.
Drew Taylor 1:25
Yeah, absolutely. So capital available, or just carriers ready and willing to underwrite companies in the cannabis space. And you’re right, whether it be plant touching or non plant touching. Unfortunately, the word cannabis has a negative connotation and kind of scares away most traditional markets.
Harry Brelsford 1:44
Yeah, it does. Anything in the since we last talked the states that went legal, in fact, your company’s based in New York that would have been in that time frame. Certainly had New Jersey in the fall elections last year. I don’t know if you know, one of our analysts is all over this Virginia, went legal. July 1. I mean, what’s the pace is increasing?
Drew Taylor 2:08
Yeah, yeah. I mean, it’s obviously exciting for us being based on the East Coast, it feels like we finally get to play a home game. You know, we’ve been, we’ve been playing in California now for five or six years. So it’s nice to have kind of the green rush in on the east coast. I think for an update, you know, unfortunately, it seems like while it’s been legalized, it doesn’t look like the licensing is picked up. Or sales will really go live until 2022 23, 24. at the earliest, and some of those states
Harry Brelsford 2:41
Well, in my side says, You know, I focus on cannatech or the tech sector on my side, the service providers, the computer, guys and gals that would run around and serve these entities. The slow roll is actually good, because the fear would be Oh, no, I missed the opportunity. Right? I missed it. And in such as not the case, you’re in a different industry. I don’t know if the slow roll benefits you or benefits your competitors who want to get into this business. I don’t know if you want to frame up what a slow roll looks like in the insurance business.
Drew Taylor 3:18
Yeah, I think it’s probably the ladder for us. Having been involved in the industry in those, you know, Western legal states, one of the things that would benefit us the most the highest degree would be if there was a quick roll out and our competitors weren’t ready. And they’re the West Coast brokers weren’t ready to focus in the cannabis space. So I think, you know, over the next two or three years, we’ll see more more brokerages come online in New York, New Jersey area that that want to focus in it. You know, the The good thing, the good news for us is that we’ll have the longevity in the industry that will always be able to kind of play play that.
Harry Brelsford 3:59
No, I agree. I just had this conversation the other day that most people don’t realize, but mathematically, the Washington State and Colorado are entering their 10th year they went legal in 2012. And as you know, the way years look, work. We’re hitting the 10 year mark. I mean, and and people are always, you know, whoa, 10 years. That’s amazing. I’m five years in, I’m in my fifth year since I recommitted myself to the business tech side of cannabis. And to your point, I probably have an advantage in some of the conversations I’ve been engaged in because I have street cred. I hopefully know what I’m talking about. I’ve learned a few things along the way. So any of it Hey, any final thoughts before I let you run and go go back and do some underwriting man?
Drew Taylor 4:53
Yeah, I think you know, one of the things to your last point about what we’re excited about is you know, as I’m sure you’ve come across in all your calls and your interviews, the industry is so small and tight knit that the same people that are involved on the West Coast are going to be the ones that are involved on the east coast. So, you know, just open to, to stay in play with with those individuals and keep in touch with, you know, some of our great contacts on the West Coast as they come Be yourself included.
Harry Brelsford 5:19
Yeah, no, absolutely. And I’ll work with Jenny, you know, this is not a farewell and goodbye. This is just you know, let’s get back to work. And we’ll speak again soon. I’ll work with Jimmy on that.
Drew Taylor 5:31
Yeah, absolutely. Well, I appreciate your time as always.
