Legal Marijuana’s Other Drag: Many Insurers Just Won’t Touch It
- U.S. firms cautious on underwriting because of federal law
- Ohio bail-bond specialist joins small firms offering coverage
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Marijuana is already a multibillion-dollar business in the U.S. that’s drawing attention from some lawmakers eager for tax revenue and investors looking for profits. So far, however, some of the biggest insurers are taking a pass.
Allianz SE, Hartford Financial Services Group Inc., and Nationwide Mutual Insurance Co. are among large insurers that aren’t covering marijuana-related businesses. Even as U.S. states increasingly permit the use of pot for medicinal or recreational purposes, the federal government has held fast in keeping weed illegal. That’s driven off name-brand insurers and left the field open for smaller firms.