Insuring Colorado’s Growing Marijuana Industry
In previous posts, we talked about the importance of choosing niche areas of the insurance market. We continue to spotlight old markets, new markets, growing markets and overlooked markets. This week, we’ve picked one of the newest, fastest growing industries in Colorado: the marijuana industry!
The marijuana industry in Colorado
Since its legalization in January 2014, this industry has seen exponential growth from month to month. If weddings have been the oldest billion-dollar niche market industry, then the marijuana industry is the newest billion-dollar niche market. Want the chance to get in on the ground floor and be a front runner and pioneer? Then you need to start looking into how you can help the many areas of the pot market get the best insurance to protect their business.
In July of 2015, Colorado marijuana sales reached a record $96 million! In the next three years, pot sales – recreational and medical – are estimated to reach $8 billion dollars. When it comes to insurance, this niche market is ripe for the plucking. Few insurance brokers have taken on this industry, mostly because we’re still trying to figure it out. But that’s the exciting part! Instead of finding your niche in a competitive and saturated market, you now have a chance to help grow a whole new area of the insurance industry.
Aim to secure your spot in the niche within this new market. Focus on one small area of the marijuana industry where you can become even more of an expert, and quickly solidify your position as the ultimate authority on insuring the marijuana industry.
Areas of the marijuana industry that need insurance
- The dispensaries
- The growers and cultivators
- The edibles business
- The delivery business (from grower to dispensary)
Plus, every area of this industry needs all the usual types of insurance that other businesses get:
- Workers compensation
- Liability insurance
- Property insurance
- Flood insurance (this is Colorado, after all)
- Life insurance
In terms of profitability, there’s no telling how high this industry can go. But you can’t just be swayed by the dollar signs. Money alone won’t make you successful. Finding the perfect niche also means finding an area you feel passionate about. You have to be an advocate for the industry you are insuring. Building trust and respect with your clients is key, so if the marijuana industry doesn’t speak to you, then there are plenty of other niche areas where you can focus.