Alternative Risk Strategies (ARS) has created a new insurance solution for the cannabis industry.
The solution has been specifically designed to meet the most difficult insurance challenges cannabis, hemp and CBD businesses face today.
Under current market conditions, cannabis businesses are trying to purchase or renew insurance policies are experiencing an increasingly hardened insurance market.
The hardening market has been characterised by substantially higher premium rates and higher deductibles/retentions for several of their necessary policy lines.
ARS launched Cannabis Captive Solutions in response to this hard market event, for qualifying cannabis companies as a competitive and alternative risk transfer solution that can help cannabis businesses lower their costs, improve cash flow and accumulate wealth.
Eric Rahn, Managing Director commented: “A captive with little or no claims, builds up equity to be used for potential future claims (reserves), purchase re-insurance (higher limits), and apply to future premiums (cost reductions) by the company implementing the captive.
“ARS Captive Solutions is a new and effective way to keep a cannabis business resilient, cash fluid, manage risk mitigation and accumulate wealth.
“Watching the cannabis industry rapidly emerge over the last 6 years, the industry is limited in traditional insurance products and markets. Premiums continue to harden in an industry with little historical data.
“We are seeing an immediate need to provide alternative risk solutions to qualifying companies. Presently public and private cross boarder (Canadian/USA) cannabis companies are categorised as high-risk in a highly-regulated industry.
Rahn also explained that insurance companies that are presently servicing the industry, continue to charge huge premiums for coverages that are a critical foundation to protecting their business operations and attracting and retaining valuable officers and directors.
“With our new ARS Cannabis Captive Solutions, business can finally access the coverages they need to protect their business, transfer risk, and reduce insurance costs over a short period,” he added.
