As a cannabis business owner, you understand the importance of protecting your operation against risks like theft, fire, and liability. We know you’re all about living life on the edge, but when it comes to protecting your operation, playing it safe is the way to go. That’s why we’re talking insurance today. Specifically, why the financial stability of your insurance carrier is just as important as the coverage they offer. In this post, we’ll explore the significance of a carrier’s credit rating for cannabis business insurance and why choosing an AM Best A-rated carrier matters. Plus, we’ll introduce Aura Risk’s Cannabis program as a great solution for policyholders in this industry and any CBO needing replacement coverage today as a result of a recent financial downgrade of TOPA.
Significance of Choosing an AM Best A-Rated Carrier
Ok, we’re going to get a little technical here, but stay with us. AM Best is a credit rating agency that assesses the financial health of insurance carriers. Think of them as the Simon Cowell of the insurance world, but without the bad haircut. They rate carriers on a scale of A++ to D, with A++ being the highest rating possible. Basically, the better the rating, the more stable the carrier is and the more likely they are to pay out claims.
Now, why should you care about this rating? Choosing an AM Best A rated carrier for your cannabis business insurance means you can rest easy knowing your carrier is financially stable and able to handle any claims that may arise. You’ll have access to more comprehensive coverage options and be able to count on better customer service from a financially stable carrier. Plus, who doesn’t love bragging about their A-game carrier?
The Risks of Choosing an Unstable Insurance Carrier
But what if you choose an unstable carrier? Yikes, that’s like riding a bike with a flat tire. An insurer with a poor financial rating may struggle to pay out claims, offer limited coverage options, or even go out of business altogether. You don’t want to be stuck in a sticky situation where you’re not protected, do you?
Lessons from Recent Market Turmoil
The past few years have been marked by economic uncertainty and market challenges, which have significantly impacted the insurance industry. In particular, carriers that were not financially stable have struggled to weather the storm, leaving policyholders in a difficult position. With the recent downgrade of TOPA to B++, CBOs are left holding the bag and put in a position to make pivots to address compliance and stability. Retailers face the same challenges in protecting themselves against potential E&O issues. However, carriers with strong financial standing have been able to maintain their stability and continue to serve their customers. For cannabis businesses, this means that choosing a financially stable carrier is more important than ever.
How to Evaluate a Carrier’s Credit Rating
So, how do you find an AM Best A rated carrier? Just like finding the perfect strain of cannabis, it takes a little research. You can start by looking at AM Best ratings reports, which provide detailed information on a carrier’s financial health and track record. You can also consider the carrier’s claims-paying ability, reputation within the industry, and overall risk profile. By doing your homework, you’ll be able to choose a carrier that’s the perfect match for your business. Working with your trusted advisor, can bring the resources and educational materials needed to make the best decision for your business.
Aura Risk’s Cannabis Program: A Great Solution for Policyholders
At Aura Risk, we understand the unique risks and challenges facing cannabis businesses today. That’s why we’ve developed a tailored insurance program specifically for this industry and partnered with an A-rated carrier. Aura can bundle together policies to make things super easy for policyholders to obtain financial stable coverage from one carrier of choice, not multiple carriers with different credit ratings. Aura understands that delivering quote proposals in a timely fashion matters and our turnaround time is unparalleled in the marketplace right now. Our Cannabis program offers a range of coverage options, including general liability, product liability, property, and cargo. We also provide cover for workers’ compensation, employment practice liability, cyber liability, D&O, parametric cover, XS, and Auto. Plus, our carrier partners are all financially stable and well-respected within the industry, so you can feel confident that you’re getting the best possible coverage and service.
In conclusion, insurance might not be the most exciting topic, but it could save your cannabis business. Choosing an AM Best A rated carrier means you’ll have peace of mind knowing your carrier is financially stable and able to handle any claims that may arise. And with Aura Risk’s Cannabis program, you can get the coverage you need from a carrier you can trust.
For those CBOs impacted by TOPA’s downgrade, Aura Risk is able to step in and help these policyholders replace coverage with A-Rated, financially stable carriers. Contact us today to learn more about our program and how we can help your business.