GRAND RAPIDS, Mich.--(BUSINESS WIRE)--The Michigan Cannabis Risk and Financial Association (MCRFA) announced Friday a groundbreaking solution for legal medical cannabis growers, transporters, compliance facilities, provision centers, processors and other licensed entities needing to fulfill Michigan’s financial responsibility requirement from the Bureau of Medical Marihuana Regulation LARA application. Called “Licensee Patient Protection from Adulterated Marihuana,” this member-based product is the first and premier insurance solution to Michigan’s Medical Marihuana Facilities Licensing Act section 408, which mandates licensed businesses in the state’s legal medical marijuana industry carry liability insurance that includes protection from intentional acts for up to $100,000 in adulterated marijuana or post $100,000 in cash or bonds. Section 408 of the act reads:
“Before the board grants or renews any license under this act, the licensee or applicant shall file with the department proof of financial responsibility for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused product in an amount not less than $100,000.00. The proof of financial responsibility may be in the form of cash, unencumbered securities, a liability insurance policy, or a constant value bond executed by a surety company authorized to do business in this state.”
“Licensee Patient Protection from Adulterated Marihuana” is a benefit for industry professionals that join the Michigan Cannabis Risk and Financial Association (MCRFA), one of the first professional groups in Michigan dedicated to becoming a change agent in insurance within the restricted financial system for Michigan’s legal medical marijuana industry. Other financial tools in development include a pooled collateral financial instrument and a credit union so industry professionals can concentrate on growing, processing, hauling, testing and selling legal medical marijuana.
“Operators in this space now have an insurance solution to Michigan’s financial requirement thanks to the work of MCRFA,” said Michigan Cannabis Risk and Financial Association Director Kevin Cross. "This is the first and only insurance product specifically designed to fulfill the Michigan Medical Marihuana Program application’s section two provision. It is the first of many products being developed for MCRFA members.”
MCRFA also offers member discounts from CannGen Insurance Services, LLC, which provides the most comprehensive coverage and competitive pricing on property, liability, product liability, workers’ compensation, commercial auto liability, physical damage and facility testing professional liability coverage for legal medical marijuana.
“We’re providing professional products to address the financial and risk-related roadblocks in Michigan’s legal medical marijuana industry,” Cross said. “When qualified businesses join the Michigan Cannabis Risk and Financial Association, they’ll have peace of mind knowing their investments are being protected.”
Qualified businesses can seek membership into the Michigan Cannabis Risk and Financial Association by visiting www.mcrfa.com. Annual memberships start at $500 and allow businesses access to MCRFA’s qualified insurance partners and products. The MCRFA also supports comprehensive legislation that includes legal protections for the safe use of legal medical marijuana.
About the Michigan Cannabis Risk and Financial Association
The Michigan Cannabis Risk and Financial Association (MCRFA) is a financial services company focused on reducing the financial roadblocks associated with Michigan’s legal medical cannabis industry. MCRFA is headquartered in Grand Rapids, Mich. and was founded in 2018. More information on MCRFA can be found at www.mcrfa.com.