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California Approves First Surety Bond Program for Cannabis Industry
California approved the state’s first surety bond program for the cannabis industry. The first insurer approved to offer surety bonds for the California cannabis industry is Continental Heritage Insurance Company.
Insurance Commissioner Dave Jones says, “Cannabis businesses should have insurance coverage available to them just like any other California business. As Insurance Commissioner, my mission is insurance protection for all Californians, which includes insurance for California’s legalized cannabis businesses. I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market.”
Cannabis Surety Bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). The state requires a $5,000 surety bond for most licensing categories. They are required by licensing agencies to guarantee the behavior of licensees, including compliance with the laws and regulations for that entity.
For comments, questions or concerns, please contact Dennis Kaiser


