Clarifying Law around Insurance of Marijuana - CLAIM Act

More and more states are legalizing marijuana for either medical or recreational use or both; growers, dispensaries, and other companies are forming in order to meet demand. These organizations need insurance, just like everyone else. However, because marijuana is still federally illegal, obtaining insurance is difficult if not impossible for companies to obtain. Senators Menendez, Paul, Merkley and Cramer introduced a Senate bill in 2019 ensuring access to insurance for cannabis-related businesses. A revision to that bill was introduced in 2021.

It was called the Clarifying Law Around Insurance of Marijuana, or CLAIM Act. The act first defines a number of terms. Cannabis is defined as marijuana as defined in the Controlled Substances Act (21 U.S. C. 802).  That defines marijuana  as all parts of the cannabis sativa L. plant, whether growing or not, the seeds, extracted resin, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, seeds or resin.