EXCLUSIVE: How EQUA Tackles Stigma In Cannabis Insurance With Tailored Solutions

EQUA Specialty Risk Partners, a Canadian-owned insurance brokerage, is taking on one of the cannabis industry's most pervasive challenges: stigma. Through education, advocacy and innovative risk management strategies, EQUA seeks to transform how cannabis businesses access insurance. 

In an exclusive conversation with Benzinga, Loretta Eldridge, EQUA's director of marketing, communications and strategic partnerships, and Matt Jardine, cannabis client executive, spoke about the company's mission to create insurance solutions without stigma.

Uncovering The Impact Of Stigma On Canada’s Cannabis Operators

EQUA was founded in 2020 as a specialty brokerage for complex commercial risks. Initially focusing on industries like construction and technology, the company ventured into cannabis after Eldridge, a lifelong cannabis advocate and former director of marketing at Ample Organics, joined the team. “I’m transparently a lifelong consumer, a medical patient. I am really dedicated to the cannabis community because it is my community,” Eldridge said.

The shift began when Eldridge continued attending cannabis events and noticed a pressing need for insurance solutions. Business owners approached her with urgent requests for help. “It got to the point where in one of those conversations a woman I was chatting to started to get emotional. The one woman said, ‘I met you for a reason today. I need help,'” Eldridge recalled.

These interactions prompted two years of in-depth research involving nearly 60 industry leaders across 20 sub-sectors. What the EQUA team found was alarming. Canadian cannabis operators faced inflated premiums, limited market capacity and policies riddled with exclusions.

Jardine elaborated on the practical impacts of stigma, particularly for cultivators and processors. “You could have a neighboring risk that’s a greenhouse and they would have completely different premiums for the exact same size facilities… We have coined that the cannabis surcharge,” he noted.

EQUA's Strategy: Education, Collaboration & Customized Solutions

However, EQUA has taken a proactive approach to dismantle these barriers, rooted in education and collaboration. Eldridge highlighted the importance of connecting cannabis operators directly with underwriters to dismantle biases. "We invite underwriters to tour facilities, see the stringent security measures and understand the hyper-regulated nature of the industry," she explained. These efforts have led to the entry of new insurance markets, gradually alleviating stigma.

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Customization lies at the heart of EQUA’s strategy. By deeply understanding each client’s unique needs, they tailor insurance packages accordingly. Jardine shared an example where EQUA reduced a client's stock coverage to align with actual inventory needs, saving thousands of dollars. "We personalize every policy, ensuring it matches the operator's specific requirements and eliminates unnecessary costs," Jardine said.

U.S. Laws Limit Cannabis Insurance Access Globally

Limited global insurance capacity due to U.S. federal illegality further complicates problems, leaving Canadian businesses with fewer competitive options. This limits market capacity and sustains high premiums. Eldridge described the situation as a funnel, with stigma and legal barriers narrowing options at every level.

Read Also: Legal Medical Cannabis Could Save US Healthcare $29B Annually, New Study Finds

She also emphasized the importance of global outreach: “We don’t have to just go to the United States, we educate and engage with underwriters wherever those underwriters are legally allowed to offer these services to Canadian businesses.”

‘Cannabis Surcharge' Also Hits Ancillary Companies

And the challenges don't stop at plant-touching businesses. Eldridge pointed out that ancillary companies, such as equipment manufacturers and technology providers, also face inflated premiums simply for serving cannabis clients. EQUA's role, she explained, includes educating underwriters to separate perceived risks from actual risks and advocating for fairer practices across the supply chain.

Overcoming Canada's Complex Cannabis Regulations

Moreover, navigating Canada's fragmented regulatory landscape is another area where EQUA’s tailored solutions provide critical support. Each province imposes unique insurance requirements, from product recall policies to liability limits. 

Read Also: Canada’s Cannabis Growth Slowed Due To Federal Gov Inaction, Key Industry Leader Says

Jardine noted that non-compliance can void policies, making EQUA's role in reviewing agreements and ensuring alignment indispensable for multi-province cannabis operators.

EQUA's Vision For Industry Transformation

When asked about their views on the future evolution of cannabis insurance, Eldridge expressed optimism. "The industry is waking up and wanting to support these companies because it's the right thing to do," she said. Jardine echoed this sentiment, predicting that increased competition and nuanced underwriting will lead to fairer premiums within the next two years.  

With its focus on advocacy, education and tailored solutions, EQUA is reshaping how insurance is perceived in the cannabis industry. As Eldridge put it, "We're just at the beginning of the precipice of change and we're proud to be leading the charge." 

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Image courtesy of EQUA.