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18Jan 2018

Cannabis – A Budding Market for Workers’ Compensation Insurance

The production and sale of cannabis is a “sleeping giant” in terms of business dollars in California. Though State Fund has been providing coverage to the cannabis industry since medical marijuana was legalized in 1996, the cannabis market is expected to exponentially expand this year with the legalization of marijuana for recreational use. State Fund welcomes the opportunity to service these new and expanding cannabis businesses.

Class codes for the industry include:

  • 0035, Florists – cultivating – includes the initial trimming to prepare the harvested buds for sale,
  • 4611, Drug, Medicine or Pharmaceutical Preparations Mfg., is assignable because it includes the production (compounding, blending or packaging) of drugs.
  • 6504, Food Products Mfg. or Processing- “edibles” – the manufacture of cannabis-infused products that are not baked goods,
  • 2003, Bakeries and Cracker Mfg. – the manufacture of cannabis-infused baked goods such as cookies or brownies
  • 2163, Bottling- beverages- the manufacture of cannabis-infused beverages.
  • 8017(1), Stores-retail – Retail marijuana dispensaries

Many small operations are currently bare without coverage,  so we are reaching out to educate potential policyholders on workers’ compensation insurance 101 as well as the safety services we provide to ensure a safe work environment for this growing industry.

With this in mind we will be participating in upcoming trade shows for the cannabis industry.  The first trade show we will be attending is The Cannabiz Show on January 28th from 11:00 a.m. to 4:00 p.m at The Sacramento Convention Center.  Come visit us at booth # 100.

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