California has approved its first insurer to provide surety bonds for marijuana businesses in the state.
According to the Insurance Journal, Mayfield, Ohio-based Continental Heritage Insurance Co. has passed muster with the California Insurance Commission.
Here’s what you need to know:
- Surety bonds are required for California applicants seeking licenses in most sectors of the cannabis industry.
- Most of the state’s licensed cannabis businesses are required to have a $5,000 surety bond.
- Marijuana surety bonds are often required by states with legal cannabis programs.
- Continental Heritage also provides surety bonds to Ohio’s medical marijuana companies.
- According to Surety Bond Authority, a marijuana surety bond is an agreement between obligee, principal and surety. In this case, the obligee is the state agency or city regulation department requiring the bond; the principal is the marijuana business seeking the bond; and the surety is the bond underwriter/provider backing the business to the state or city regulator.
