Nothing is more certain if you operate a cannabis company than your need for access to banking services and insurance (FWIW, the death and taxes part is probably also the case). This is true (1) as a practical matter and (2) often a legal requirement.
Practically, cannabis operators need a place to deposit and keep money and need to insure the business. After all, the cannabis industry remains a largely cash business, and anyone operating a business needs to have various levels of insurance to protect against the worst-case scenario.
And as a legal matter, many states require insurance as a requirement for cannabis operators. For example, Alabama’s new medical cannabis law requires “[a] letter of commitment or other acknowledgment… of the applicant’s ability to secure a performance bond issued by a surety insurance company approved by the commission in the amount of two million dollars” (Ala. Code § 20-2A-67(d)).
Would-be cannabis operators needn’t despair. There are banks and insurance providers that will offer services to cannabis businesses. To be sure, most banks and insurance companies are not yet providing services to the cannabis sector. But there are a growing number of such providers.
Read the complete article at www.natlawreview.com.