Markel surety, one of the largest providers of surety bonds for the cannabis industry in California, has announced it will not accept new applications effective immediately and will be non- renewing existing bonds effective 1-1-2022 and later. No reason has been given as to why they are exiting this market segment. Most insurance companies have chosen not to participate in the cannabis surety bond market because cannabis is still not legal on the federal level. While somewhat of an abrupt decision, these bonds were written freely by the predecessor to Markel, Surtec. Surtec was acquired by Markel in May of 2017. While not confirmed, adverse loss experience is not believed to be the reason Markel is exiting this space.
All Cultivators, Distributors, Manufacturers, Retailers, Testing Labs and Micro-businesses, are required to post a $5k Cannabis Surety Bond. The bond is required to maintain your license in the state. A lapse in the bond could result in fines and even revocation of your license. Regardless of the type of license, the bond amount required by the state is fixed at $5,000. Local municipalities may require separate bonding requirements in addition to the California Cannabis Bonds.
For more information on the various California bond types, click here.
What do I do when my Cannabis Surety Bond gets Cancelled?
Surety1.com, the premier online provider of surety bonds nationwide since 2003, has you covered. Surety1 has several markets willing to provide your bonds at competitive rates and underwriting conditions. Surety1 can usually offer same day service.
Surety1.com is a service of AssuredPartners, one of the largest and fastest growing insurance agencies in the nation. Based in Sacramento area of California, Surety1 has been providing California cannabis bonds since their inception. Competitive rates, fast service and an online application make Surety1.com the clear choice for all your cannabis related surety bonds.