Cannabis Safe Harbor

Create Cannabis Safe Harbor for Agents

PIA supports legislation to protect independent agents, brokers, and carriers from federal criminal liability for engaging in the business of insurance with cannabis-related enterprises in states in which cannabis is legal.

Nearly every state has legalized the use of marijuana to some degree. Unfortunately, the insurance industry remains potentially exposed to civil and/or criminal liability arising from the disparate legal status of cannabis at the federal and state levels. To do their jobs effectively, independent insurance agents should be protected from prosecution by a comprehensive federal safe harbor for agents, brokers, and insurers that engage in the business of insurance with cannabis-related enterprises in states where cannabis is legal.

PIA respects the state-based regulation of insurance and seeks only to protect independent agents from federal criminal prosecution for engaging in legitimate business activities.

In 2019, PIA helped develop the Clarifying Law Around Insurance of Marijuana (CLAIM) Act to address the needs of independent agents selling insurance to cannabis-related entities. The legislation would provide protections for agents, brokers, and carriers in conducting legal business relations with cannabis-related entities in states in which those entities are operating legally. Subsequently, key parts of the CLAIM Act were merged with a broader Cannabis safe harbor bill, the Secure And Fair Enforcement (SAFE) Banking Act, which would also provide protection for the banking and financial services industry. 

This issue is broadly bipartisan; Cannabis safe harbor legislation has passed the House a total of 7 times, 4 of which occurred during the last Congress. Unfortunately, each time, the legislation stalled in the Senate. 

On September 27, 2023 the Senate Banking, Housing and Urban Affairs Committee passed the latest version of this legislation, now called the Secure and Fair Enforcement Regulation (SAFER) Banking Act, the cannabis safe harbor bill (S. 2860), by a vote of 14 to 9. PIA has long supported the SAFE Banking Act, its predecessor, which was recently revised and reintroduced as the SAFER Banking Act of 2023, also with PIA’s support. The new bill changed non-insurance portions of the legislation to garner greater support for its final passage. Ahead of the markup, PIA, along with other insurance industry groups, sent a letter reiterating our support for the legislation.

PIA is continuing to make the passage of the SAFE Banking Act one of its top priorities this Congress. To see the latest blog posts on this issue, click here.

For the most up-to-date information on cannabis and all our issues, be sure to visit and follow the PIA Advocacy blog, located at www.piaadvocacy.com.