Thank you for sharing!

Your article was successfully shared with the contacts you provided.

June 4, 2018

At the request of the California Department of Insurance, AAIS has developed a BOP policy for the cannabis industry. It has been approved in California as of today. This article will discuss the new policy, AAIS CB 0204 03 18 Cannabis Business Owners Policy California. A lot of the policy matches the AAIS BOP; we will therefore discuss the parts particular to the coverages related to cannabis exposures.



Common Policy Conditions

Property Coverages

Property not Covered

Additional Property Excluded and Limitations

Additional Coverages

Extension of Coverages

Coverage C-Loss of Income


Additional Exclusions

What Must be done in Case of Loss

Valuation of Property Losses

Commercial Liability Coverage-Additional Definitions

Commercial Liability Coverages


Medical Payments

Fire Legal Liability, Personal and Advertising Injury

Additional Liability Exclusions

Supplemental Payments, What Must be Done in Case of Loss, How Much we Pay, Additional Conditions


Many definitions are standard and are found in any policy. Some are particular to the risk involved. The definition of “you” and “your” makes a point to specify that registered domestic partners are included as spouses for the purposes of the policy.

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Request a Free Trial today to enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Trusted, quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].


Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: When Your License Expired so they Took your Hemp ›

Certain legal products require the grower/seller to have a license in order to grow, store and sell the product. Once an individual's license expires, that individual may find themselves in violation of state laws, and may experience serious consequences.

Question of the Week Archive ›

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.