Conifer Insurance Services, in collaboration with Skyward Specialty Insurance Group, has launched Cannabis Select, a new insurance program targeting multi-state operators (MSOs) and larger cannabis businesses. 

Cannabis Select is structured to complement Conifer’s existing Cannabis Essentials program, which focuses on dispensaries, smaller cultivators, and local operations. Together, Conifer says that the two programs allow it to address a broader range of coverage needs across different stages of business development in the cannabis industry. 

Conifer, which has served the cannabis industry for more than 10 years, was acquired by Bishop Street Underwriters in 2024. Since then, the company has expanded its underwriting capabilities and incorporated AI tools to better serve agency partners and cannabis businesses. 

Cannabis Select provides high-limit, non-admitted coverage to dispensaries, cultivators, and manufacturers operating across state lines. Coverage includes up to $25 million in property protection and up to $5 million per occurrence in general and product liability, compared to Cannabis Essentials, which offers up to $5 million in property and $1 million/$2 million in liability coverage. 

Both programs are backed by AM Best A-X rated carriers and are available in legal cannabis markets nationwide. 

The development of the Cannabis Select program is led by Kathleen Brown-Hurtado (pictured above), president of Cannabis Specialty Programs at Conifer, along with Jason Scheurle, vice president of the unit. 

Nick Petcoff, CEO of Conifer Insurance Services, said the program builds on Conifer’s long-standing approach to service and flexibility while adapting to new market demands. 

“As the cannabis industry matures, our agency partners have consistently shared the need for higher limits and greater capacity,” Petcoff said, highlighting growth in the market. 

Financially, the cannabis insurance sector was valued at approximately $2.32 billion in 2024 and is projected to reach $6.7 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.14%. This growth is driven by increasing legalization across states and the corresponding need for insurance coverage in various segments of the cannabis industry. 

Despite this growth, the market faces challenges. The hardening trend in cannabis insurance is expected to persist through the end of 2024 and into early 2025, influenced by ongoing regulatory developments and the evolving nature of cannabis products. 

Additionally, the industry is grappling with financial strains, including delinquent payments totaling $3.8 billion, attributed to high borrowing costs and the necessity to maintain cash reserves. 

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