California Insurer Offers Medical Marijuana Coverage

A California insurance company now offers coverage for "all aspects" of the medical marijuana industry, including liability, workers' compensation, and operations related to growing pot.

Statewide Insurance Services of Rancho-Cordova said its new coverage plan, launched Monday, extends to all 50 states, even though medical marijuana is only legal in 14, The Sacramento Bee reported.

"Now that we can offer (services) in all 50 states, we can start the minute they go legal, without delay," Mike Aberle, director of Statewide's Medical Marijuana Specialty Division, told the newspaper.

The company will also cover motor vehicles used to transport marijuana and product loss.

Medical marijuana dispensaries can expect to pay $650 to $25,000 a year on premiums, depending on the size and type of operation. Typical policies have annual premiums in the $1,000- to-$4,000 range, Aberle said.

California voters approved marijuana for medical use in 1996. The number of dispensaries rose dramatically in 2009 when the Obama administration said it would not prosecute law-abiding marijuana growers and sellers. There are an estimated 2,000 dispensaries in the state.

Medical marijuana is also legal in Alaska, Colorado, Hawaii, Maine, Michigan, Montana, Nevada, New Mexico, New Jersey, Oregon, Rhode Island, Vermont and Washington.