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EQUA Calls For Insurance Without Stigma

EQUA Specialty Risk Partners Corporation (EQUA), a commercial insurance brokerage and risk management company, is on a mission to create insurance without stigma for the Canadian cannabis industry.

EQUA became involved in the cannabis sector in response to an immediate and urgent need for fair insurance solutions. In 2021, our team members began receiving calls for help from the cannabis industry. This initiated a research project that would span two years and include nearly 60 industry leaders across 20 operational areas. During this time, EQUA placed a wide range of cannabis risks, provided advice and support across the sector, engaged the government for much-needed change, and were selected as an Affiliate Member of the Cannabis Council of Canada.

This research and industry engagement identified several factors contributing to the current state of insurance within this sector. A few of these include:
  • Differing interprovincial insurance requirements
  • Provincial requirements for insurance coverage that is not commonly available in the market
  • Limited insurance market capacity due to U.S. federal illegality, a lack of historical data, and stigma
  • Exclusive agreements between Managing General Agents and some of the markets that serve the sector
  • The necessity for retail brokerages to provide industry expertise, regardless of internal resources to develop this specialization
The most notable and disappointing discovery we’ve made is the existence of what our team has termed “the cannabis tax.” The majority of Canadian cannabis companies and those that serve them — save for retailers — are charged premiums that are much higher than those of their peer groups in other industries. These high premiums are not only difficult to understand, but they can also devastate a business and an industry that is struggling to survive. At the heart of these issues is stigma. Within the insurance industry, stigma surrounds cannabis consumption, the industry itself, and the risks involved in these operations.

EQUA is now on a mission to create insurance without stigma for this sector. Our Managing Partners unanimously agreed to break our internal model to provide members of this business community – regardless of revenue — with access to a suite of senior insurance experts who build new solutions for individual companies.

Today, we work closely with cannabis industry leaders to collect data, provide insight, and – most importantly – connect them directly with insurance underwriters to tell their stories. Through relationship building and education, we are working to eliminate stigma and increase insurance market capacity. Our journey is just beginning. Read more on our core industry page or email findoutmore@equaspecialty.com for more information.