Proposed House Bill to Provide Protection for Insurers Servicing Cannabis Industry in Some States

Cannabis business owners in the 33 states that permit some medical cannabis use and the 11 states and District of Columbia that have legalized the sale and recreational use of cannabis face unique challenges. One of those includes banking and insurance. Banks, financial services companies, and insurance companies shy away from doing business with the industry due to criminal and civil liability concerns because cannabis is still outlawed by US federal law. The Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act) offers protection against enforcement of federal law for financial services and insurance companies who service the cannabis industry. The bill, HR1595, was passed by the US House of Representatives in September 2019. If passed in the Senate, the bill would open a new industry of possibility to banks and insurance companies in states where cannabis has been legalized. Read more about the bill and how it might fare in the Senate.