AlphaRoot Launches Management Liability Insurance Program Calibrated to the Cannabis Industry

Rhea-AI Summary

BRP Group, Inc. (NASDAQ: BRP) announces the launch of a new management liability insurance program through its subsidiary, AlphaRoot, catering specifically to the cannabis, hemp, and CBD industries. This program addresses the high costs and restrictive coverage commonly faced by private cannabis operators. Key features include up to $5M in Directors & Officers Insurance, $1M for Employment Practices and Fiduciary Liability Insurance, and tailored policy options. This initiative aims to support the industry's expansion amidst ongoing state legalization efforts.

Positive

• Launch of management liability insurance program targeting cannabis industry.
• Addresses high costs and restrictive coverage in the cannabis sector.
• Offers up to $5M in Directors & Officers Insurance and $1M for Employment Practices Liability.
• Tailored policy customizations catering to specific client needs.

Negative

• None.

NEW YORK, Dec. 7, 2021 /PRNewswire/ -- BRP Group, Inc. ("BRP Group") (NASDAQ: BRP), an independent insurance distribution firm delivering tailored insurance solutions, is pleased to announce the launch of the AlphaRoot management liability insurance program calibrated to the cannabis, hemp and CBD industries within its specialty indirect subsidiary, Millennial Specialty Insurance, LLC dba AlphaRoot* ("AlphaRoot").

"We believe this will be revolutionary for the industry..."

Given the rapid development of the cannabis sector and the continued trend of state legalization, insurance will play a key role in ensuring responsible growth. With the new program, AlphaRoot aims to empower cannabis companies to focus on expansion, bridging the gap between comprehensive coverage and the right price point for private-held cannabis operators.

Management liability refers to a package of insurance policies intended to protect a company, its directors, and its officers. The program which is exclusively available to AlphaRoot clients includes:

• Directors & Officers Insurance (D&O): This protects both the company and the individual directors and officers of the company from claims brought against them for the management of the company.
• Employment Practices Liability Insurance (EPL): This protects the company from claims alleging mistreatment of their employees (i.e., HR-related claims).
• Fiduciary Liability Insurance: This protects from legal liability should a benefit plan administrator miscalculate, mishandle, or practice improper plan care. ¹

AlphaRoot's strategic partnership with their in-house Managing General Agent (MGA) provides the capacity to write management liability insurance for private cannabis operators. This program will be exclusive to AlphaRoot's clients and offer unique coverage features, including:

• Up to $5M in limits for D&O
• $1M in limits available for EPL and Fiduciary
• Flexible policy customizations with the ability to tailor to the insured's needs from a pricing and coverage perspective
• Policies written on Am Best A rated paper
• Expertise with underwriting emerging industries and disruptive technologies outside of cannabis

"Over the past six to 12 months, we've seen a number of new entrants try to solve the problem that many private cannabis operators face with management liability insurance—it's too expensive and the coverage is too restrictive," says Drew Taylor, Managing Director and Head of Broking at AlphaRoot. "We feel our Management Liability Program pushes the industry toward a solution that offers flexible coverage with the operator's budget in mind."

"We believe this will be revolutionary for the industry and we are excited about this development. Coverage options are generally limited in the cannabis industry so we're thrilled to be able to present a new program to our clients," says Eric Schneider, Managing Director and Head of Growth of AlphaRoot.

ABOUT ALPHAROOT

AlphaRoot is part of a tech-enabled insurance brokerage focused exclusively on the cannabis, hemp, and CBD industries. Our mission is to strengthen and legitimize the cannabis industry as we believe that cannabis, agriculture, and the supporting technology ecosystem are critical parts of American society.

*Millennial Specialty Insurance, LLC dba AlphaRoot is used subject to regulatory approval.

ABOUT BRP GROUP, INC.

BRP Group, Inc. (NASDAQ: BRP) is an independent insurance distribution firm delivering tailored insurance and risk management insights and solutions that give our clients the peace of mind to pursue their purpose, passion and dreams. We are innovating the industry by taking a holistic and tailored approach to risk management, insurance and employee benefits, and support our clients, Colleagues, Insurance Company Partners and communities through the deployment of vanguard resources and capital to drive our growth. BRP Group represents over 700,000 clients across the United States and internationally. For more information, please visit www.baldwinriskpartners.com.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which represent BRP Group's expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or BRP Group's strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "projects", "potential", "outlook" or "continue", or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption "Risk Factors" in BRP Group's Annual Report on Form 10-K for the year ended December 31, 2020 and in BRP Group's other filings with the SEC, which are available free of charge on the Securities and Exchange Commission's website at: www.sec.gov, including those risks and other factors relevant to BRP Group's business, financial condition and results of operations of BRP Group and factors related to the potential effects of the COVID-19 pandemic on BRP Group's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to BRP Group or to persons acting on behalf of BRP Group are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and BRP Group does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

¹ Program availability is subject to underwriting eligibility and may require coverage exclusions and subjectivities. D&O, EPL and Fiduciary Liability policy language and terms are available upon request.

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SOURCE Baldwin Risk Partners

FAQ

What is the new insurance program launched by BRP Group?

BRP Group launched a management liability insurance program through its subsidiary AlphaRoot for the cannabis industry.

What are the coverage limits of the new insurance program by BRP Group?

The program includes up to $5M in Directors & Officers Insurance and $1M for Employment Practices and Fiduciary Liability Insurance.

When was the management liability insurance program launched by BRP Group?

The insurance program was launched on December 7, 2021.

Who will benefit from the management liability insurance program by BRP Group?

Private cannabis operators will benefit from this program, which addresses their insurance needs.