Have you received inquiries about whether or not you offer insurance to cannabis or cannabis-related businesses? If you’re wondering if you should tap into this growing market, read on to discover the advantages.
It’s a growing industry
Arcview research firm projects marijuana sales to jump from $6.7 billion in 2016 to $22.6 billion by 2021, representing a 27% compound annual growth rate (CAGR). Very few industries reach $5 billion in annual spending and then see a 20%+ CAGR. As the industry develops, more challenges are being uncovered and more applications for the product are being discovered, both presenting opportunities for new ventures. Chances are there will be a whole slew of cannabis and cannabis-related businesses that haven’t even been thought of yet. Not only that, existing marijuana businesses are going to grow as the industry matures. According to Cannabis Business Times’ research, 77% of cultivators plan to add square footage to their existing operations in the next two years at an average of 22,300 square feet. It’s safe to say that the need for cannabis insurance isn’t going anywhere.
Times have changed
While the marijuana industry may have once had a negative connotation associated with it, gone are the days of people running cannabis businesses out of their basement. The industry is flooded with adept entrepreneurs coming up with ingenious solutions to meet the growing demands of the industry. These brilliant entrepreneurs represent an ideal client – reliable, smart and oftentimes, already successful.
You’ll be one of the first to market
The cannabis industry is still somewhat of a “new” market and agents are just starting to get into this niche area. Offering cannabis insurance presents a major opportunity and starting now, as the industry is beginning to explode, can put you miles ahead of your competition.
You can make a difference
Because the industry is still maturing and information can be scarce, many existing cannabis businesses have resorted to obtaining insurance policies through unknowledgeable agents or even worse, have chosen to self-insure. These businesses are operating with policies that have major gaps or don’t cover everything needed, or are operating with no policy at all. As an agent, you have the opportunity to fill these gaps by becoming an expert in this industry, really understanding your clients and their needs and ensuring those needs are being met through comprehensive policies.
If you’ve received a request from a cannabis or cannabis-related business, we can help by simplifying the process and providing a quick quote turnaround. Learn more.