Cannabis insurance: why Colorado is covered and California isn't

Cannabis insurance why Colorado is...

PUEBLO, Colo. - More than 30 marijuana cultivation farms in California have been damaged by fires still burning in the state. 

Because of this, growers are losing a lot of money because their plants aren't insured.

We spoke with Gerry Jones and Mark McNeely, who work for Cannabis Insurance Solutions in Denver, and they say the cannabis insurance industry is quickly evolving.

"You have crop insurance and general liability for the building and professional liability for the people who come in and spray the crops and those kind of things. So the full gamut of coverages any other businesses would have access to," Jones said.

But if the marijuana was being grown outside, Jones says no matter what state you're in, there isn't any coverage available.

"Most outdoor agricultural programs are federally insured and backed, and since cannabis is not federally legal yet, those programs don't apply to cannabis or hemp operations," Jones said.

So what would happen if a disaster wiped out cultivators in Pueblo County? County Commissioner Sal Pace said it would not be good.

"We receive sales tax, we receive licensing fees, excise tax on the cultivation and a number of projects (funded by marijuana)," Pace said.

But because every marijuana dispensary and cultivation is licensed with the state, if something like this ever happened in Colorado, they would be covered if they are insured.

"It's becoming just a regular business, do regular business things. Most of them have banking and access to checking accounts now," Jones said.

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