Recently, over 2.1 million Ohio residents voted in favor of legalizing recreational possession and use of marijuana for adults 21 years of age and above. It became the 24th state in the country to pass this statutory initiative that permits cannabis use for non-medical purposes.
This blog delves into the impact of this landmark event on the cannabis business and the subsequent insurance boom waiting to happen once the new law is enacted.
November 7, 2023, saw the voters in the state of Ohio approve Issue 2 to legalize recreational marijuana. A new chapter of the Ohio Revised Code, Issue 2, permits the controlled and regulated farming, processing, sale, possession, in-home cultivation, and use of cannabis.
The law goes into effect on December 7, 2023. Once it becomes legal, 21 years and above adults will be allowed to possess up to 2.5 ounces of cannabis and up to 15 grams of cannabis extract. Additionally, an adult at least 21 years of age can grow up to 6 cannabis plants in their home.
Decriminalizing marijuana for recreational use means the emergence of new legal cannabis companies. The existing businesses may see an overhaul in how they operate to gear up for a higher demand for the product. Marijuana cultivators will need more resources, including workers, to farm, process, distribute, and sell different types of marijuana-based products.
The cannabis industry, which includes medical, therapeutic, and recreational marijuana, has been experiencing rapid growth, with more and more states legalizing marijuana. Its revenue is expected to reach US$33.88bn in 2023 and grow at a CAGR of 14.66% to reach US$67.17bn by 2028.
With the inclusion of the marijuana business within the legal purview, the cannabis industry is expected to see higher investments, an increased workforce, and a streamlined business structure, with more business owners buying cannabis insurance for greater financial security.
Cannabis insurance is a customized insurance product for small businesses such as cannabis cultivators/manufacturers, transporters, distributors, dispensaries, and others. It offers protection for a range of risks unique to the cannabis industry.
With the boom in the cannabis industry come increased risks. To ensure that their business is secure, business owners must consider buying insurance such as:
While the emerging market has seen a surge in the demand for cannabis insurance, insurance companies face particular challenges, including:
At T.A. Swain Insurance Group, we have offered quality customized insurance solutions for your business needs since 2007. Contact us today to learn more about our wide array of commercial insurance coverages. Call us at (614) 224-1329 to get started.
