Carma Launch Session

McKenzie Gilbert, Strategic Partnership Manager at FIRST Connect, introduced the new partner launch with Carma, highlighting that it's an Instant Access partner with a 14% new and renewal rate for commercial cannabis products. She demonstrated how to find and request access to Carma through the FIRST Connect portal. Bryan from Carma presented the company's background, emphasizing their unique experience in the cannabis industry, AM Best-rated carrier backing, and licensed presence in all 50 states. He noted Carma's advantage in offering instant access quoting, cannabis-specific forms, and flexible coverage options for businesses ranging from new ventures to large multi-state operators.

 

Zim Shikari, Director of Underwriting at Carma, presented the company's new product offerings and program for cannabis operators. He outlined the various types of cannabis businesses they can cover, including testing labs, cultivators, manufacturers, distributors, and dispensaries, with specific details on coverage for different grow lights, extraction methods, and security measures. Zim also explained the available insurance products, including general liability, products liability, and property coverage, emphasizing the importance of theft coverage for dispensaries and specialized coverage for living plants in cultivation operations.

 

Bryan and Zim discussed underwriting guidelines for cannabis cultivators, noting that they align with state requirements to ensure compliance. Zim outlined key program details, including a $10 million TIV limit per location with the option for facultative reinsurance for larger values, a $1,200 minimum premium, and coverage options for both general liability and premises liability. Bryan highlighted an increase in LRO (lesser risk operator) cases, particularly with shopping centers allowing dispensaries without proper notification, and explained how their coverage can accommodate these risks with competitive rates and high liability limits up to $5 million.

 

Bryan demonstrated the application process for insurance quotes, explaining how agents should pre-populate forms with client information including license numbers and projected sales figures. He noted that the underwriting software validates license information and can handle pending license situations, with typical turnaround times of one day for smaller premiums under $10,000. Bryan emphasized that while initial applications can be modified later, agents should provide realistic projected sales figures as rates are based on sales volumes.

 

Zim explained that for complex risks, the team offers personalized consultation to determine specific coverage needs and provide quotes efficiently, with quick turnaround times for urgent requests. He addressed questions about covering licensed growers' owner-occupied dwellings, noting that while residential exclusions exist on general liability policies, property coverage can often be arranged with additional questions, and residential aspects can be carved out if necessary. Zim also clarified that the company can write policies in states where cannabis is legal, but not for THC operations in states where it remains illegal.

 

The meeting focused on discussing Carma's insurance products and services for cannabis businesses. Zim and Bryan explained their coverage options, including general liability, property, and excess insurance, as well as their ability to write policies for various business types and locations. They addressed questions about their products in saturated markets like California and Colorado, their competitive positioning against other carriers, and the structure of their Talisman captive product. The team also discussed submission processes through First Connect and offered to provide additional support for agents new to cannabis insurance.