Alchemy readying launch of E&S builders’ risk and cannabis extractor programs

By Chris Munro

April 30 - (The Insurer) - Alchemy Insurance Solutions is poised to bring a new E&S builders’ risk program to market in the coming weeks, with the MGU also working on a specialist extractor-focused cannabis coverage which it hopes will be live by year-end.

The Lancaster, Pennsylvania-based MGU, which rebranded from Cornerstone Insurance Producers in March, writes a range of programs for companies operating in sectors including self-storage, construction, cannabis and artisanal contractors.

The MGU’s new E&S builders’ risk program “is right around the corner”, Alchemy’s director of program distribution Matthew Waxman said during a webinar on Tuesday.

“We're looking at three weeks to a month, hopefully, to have that in the system where (we’ll) actively be quoting on an E&S basis for builders’ risk,” he said.

Alchemy already has builders’ risk programs on its books. Its national builders’ risk program is available across the U.S. and in Puerto Rico, and is written on admitted AM Best A-rated paper.

The program offers coverage of up to $5 million total insured value, although higher limits are available with underwriting review.

Alchemy’s coastal builders’ risk program is written on admitted Demotech A-rated paper, and is offered in Texas and Florida, with other states coming online later this year.

“We have plans to expand that out throughout the remainder of the Gulf states in the near future, which will provide for a solution with a pain point with many of you.

“Any of you that are quoting coastal Carolinas know that it's fairly difficult to place those risks, and we will have our coastal program hopefully spread out that way,” said Waxman.

Alchemy already writes a wide range of cannabis sector clients, offering business owner's policy coverage comprising general liability, product liability and property to medical and recreational dispensaries, along with vape, tobacco, hemp or CBD shops.

It also writes coverage to lessors renting to one of more cannabis or tobacco operations, and cultivators and growers.

The cannabis programs are offered in Alaska, Arizona, Arkansas, Colorado, Illinois, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania and Washington.

Alchemy has written its cannabis programs for just over two years, and recorded its largest month to date in March.

“We’re seeing growth in our largest states, which are Oklahoma and Oregon, and we're seeing additional distribution growth in Massachusetts, Nevada (and) New Mexico,” he said.

Waxman said Alchemy hopes to extend its reach in the cannabis market by writing coverage for extraction firms.

“We're developing extraction, which should hopefully be out later in 2025 currently,” Waxman said.

Alchemy rebranded from Cornerstone last month. As the company explained, “Alchemy represents transformation – the ability to turn challenges into opportunities”.

The company, which is led by president John Myers, was founded in 2011 as a provider of self-storage tenant insurance, and it has since evolved into an MGU offering programs across the self-storage, construction and cannabis industries.

Alongside those, it also offers an artisanal contractors' general liability program.