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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.

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