Cannabis Underwriting & Risk Evaluator
Model commercial cannabis exposures, audit catastrophic policy warranty traps, estimate surplus lines syndication rates, and produce verifiable underwriting packages.
Underwriting Syndication Analysis Bindable Tier A
Clean Protective Safeguards Compliance
All fundamental burglary, fire suppression, and state compliance warranties are satisfied. Standard primary surplus lines appetite applies without punitive exclusions.
| Coverage Line | Limit / Sublimit | Deductible / SIR | Rating Basis | Estimated Premium | Warranty Clause |
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Why Cannabis Underwriting Differs
Standard admitted carriers (Chubb, Travelers, Hartford) largely avoid plant-touching cannabis due to Federal Schedule I status. Over 90% of coverage is placed in the non-admitted surplus lines market with Lloyd's of London syndicates or specialized domestic MGAs.
- Protective Safeguard Endorsements (PSE): Claims for theft are immediately denied if inventory wasn't in a TL-15 safe or alarm was offline.
- Health Hazard / Product Recall: Vaping pulmonary illness and heavy metal contamination require separate product liability tranches.
Crucial Policy Warranties
Breaching a warranty acts as a complete bar to recovery under maritime and surplus lines common law, even if the breach was unrelated to the proximate cause of loss:
- Assault & Battery Exclusion: Security guards dealing with dispensary robberies without a buyback endorsement void all liability coverage.
- Living Plant Endorsement: Standard commercial property defines plants as outdoors or uninsurable unless specific vegetative cycle endorsements exist.
Rating Bases & Layering
High-value extraction facilities and multi-location MSOs require layered towers ($5M primary + $10M excess) syndicated across multiple non-admitted syndicates:
- Property Rate: Evaluated per $100 of Total Insured Value (TIV) factoring COPE (Construction, Occupancy, Protection, Exposure).
- CGL Rate: Rated per $1,000 of gross sales or square footage.