Ian Stewart (Partner-Los Angeles) was one of four recognized authorities asked to predict "4 Ways COVID-19 Will Change Cannabis and Insurance" in the April 9, 2020, edition of Insurance Journal. The article notes that cannabis may have achieved a reputational boost when states declared it an essential business, putting insurers on notice that while marijuana still may be considered illegal in the eyes of the federal government, most states consider it not only legitimate but important. Ian concurred that the recognition bodes well for the long-term sustainability of the cannabis industry. He also noted that any cannabis-related legislation, such as SAFE Banking, is "DOA on Capitol Hill until well after the election." Ian went on to predict that insurers will wait and watch before rolling out new insurance products, particularly specialty lines, and that the industry may not survive the downturn in available financing from the capital markets compounded by lack of assistance under the CARES Act and other federal programs.
Originally Published 14 April, 2020
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