Alternative Risk Strategies Launches Captive Insurance Solution for Cannabis, Hemp, CBD Businesses


<![CDATA[BOCA RATON, FL. / DENVER, CO., JUNE 16, 2021 – Alternative Risk Strategies (ARS) today announced a new insurance solution for the cannabis industry that is specifically designed to meet the most difficult insurance challenges cannabis, hemp and cannabidiol (CBD) businesses face today. Under current market conditions, cannabis businesses that are trying to purchase or renew insurance policies are experiencing an increasingly hardened insurance market characterized by substantially higher premium rates and higher deductibles/retentions for several of their necessary policy lines, such as Directors and Officers insurance. In response to this hard market event, ARS launched Cannabis Captive Solutions for qualifying cannabis companies as a competitive and alternative risk transfer solution that can help cannabis businesses lower their costs, improve cash flow and accumulate wealth. A captive is a unique insurance company set up by its business owners to insure emerging and unique market conditions and avoid, when available, overpriced traditional insurance policies. As opposed to a traditional insurance company that collects the premium and retains the profits, a business-owned insurance captive has the unique ability to manage, assign and script specific risks and pay claims. A captive with little or no claims, builds up equity to be used for potential future claims (reserves), purchase re-insurance (higher limits) and apply to future premiums (cost reductions) by the company implementing the captive. ARS Captive Solutions is a new and effective way to keep a cannabis business resilient, cash fluid, manage risk mitigation and accumulate wealth.“Watching the cannabis industry rapidly emerge over the last 6 years, the industry is limited in traditional insurance products and markets. Premiums continue to harden in an industry with little historical data. We are seeing an immediate need to provide alternative risk solutions to qualifying companies,” said Eric Rahn, managing director. “Presently public and private cross [border]…

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Source : Alternative Risk Strategies Launches Captive Insurance Solution for Cannabis, Hemp, CBD Businesses

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