Reps. Velázquez and Davidson Introduce Bill to Help Cannabis Businesses Obtain Insurance

Washington, DC – Today, Rep. Nydia M. Velázquez (D-NY) and Rep. Warren Davidson (R-OH) introduced the Clarifying Law Around Insurance Marijuana, or CLAIM Act, which would prevent federal criminal prosecution of insurers and end civil liability for brokers, agents, and insurers that deal with companies in the cannabis sector.
 
"Insurance companies are often times reluctant to provide coverage to cannabis-based businesses, due to discrepancies between federal and state laws,” said Congresswoman Velázquez. “These promising new businesses have no safety net in place and are left extremely vulnerable to natural disasters or fires that may destroy all they've worked to build. This bill will help entrepreneurs operating in the legal cannabis sector access to the insurance they need to protect their business.”
 
“Insurance companies must be allowed to participate for the marketplace to function properly, they play a critical role for the development of small businesses,” said Congressman Warren Davidson. “The CLAIM Act takes needed corrective action by granting the ability to insure risk without having otherwise lawful markets blocked by regulators.”
 
The bill also requires the Government Accountability Office to conduct a study of the hurdles facing both women and minority entrepreneurs considering a career within the cannabis sector, in order to address the historical legacy of targeting minorities through marijuana-related charges.
 
The text of the bill can be found here.