Tag

Food and Agribusiness

Nov 29

What exactly is a surety bond for cannabis, anyhow?

By Business Insurance, From the Experts
Cannabis surety bonds range from $5,000 to $5,000,000. They provide a financial guarantee to states or municipalities that companies will follow laws and regulations tied to their licenses. These bonds work in two key ways: They require companies to undergo financial and credit scrutiny. This ensures leadership is qualified and poses a low risk. If a company violates bond terms and causes financial loss, the state or municipality can file a claim. If valid, the surety pays up to the bond amount and seeks reimbursement from the company. Challenges in Getting Cannabis Surety Bonds Securing cannabis surety bonds isn’t easy.…
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Nov 01

The New Michigan Marijuana Liability Requirement – Where to Start?

By Business Insurance, From the Experts
Unsure where to start with Michigan’s new marijuana liability insurance requirement? Kapnick can help. Public Act 55 of 2021 recently amended the Michigan Regulation and Taxation of Marihuana Act. Effective October 11, 2021, this law requires marijuana retailers and microbusiness licensees to maintain at least $50,000 in marijuana liability insurance coverage. Compliance Deadlines for Marijuana Liability Insurance The compliance timeline depends on your license date: Existing Licenses: Retailers and microbusinesses licensed before October 11, 2021, must submit proof of liability insurance to the MRA at license renewal. New Licenses: Retailers and microbusinesses licensed on or after October 11, 2021, must…
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