SAFE/SAFER Banking Acts & the CLAIM Act (2025): Why They Matter for Insurance

The cannabis industry still operates under a complex clash of federal and state laws. The SAFE/SAFER Banking Acts and the CLAIM Act aim to reduce cash reliance, open access to mainstream banking and insurance, and improve transparency for underwriting. This article explains what each bill does, where they stand now, how they affect insurers and policyholders, and what operators can do today.

Table of Contents

• What Are the SAFE, SAFER, and CLAIM Acts?
• Where Do Things Stand as of 2025?
• Why Does Banking Reform Matter to Insurance?
• How Could Federal Rescheduling Interact with Banking & Insurance?
• Who Benefits If SAFE/SAFER/CLAIM Pass?
• What Are the Main Challenges?
• Insurance Impacts You Can Expect (Short‑to‑Mid Term)
• Practical Steps for Cannabis Businesses Now
• Quick Reference: What Each Bill Does
• FAQs (Simple & Straightforward)
• Sources (Outbound Links)

What Are the SAFE, SAFER, and CLAIM Acts?

SAFE Banking Act. Prohibits federal banking regulators from penalizing banks and credit unions for serving state‑legal cannabis businesses (and their service providers). This includes protecting deposit insurance, loans, and basic banking services.

SAFER Banking Act. A Senate update to SAFE that advanced out of the Senate Banking Committee in 2023 and remains the primary vehicle for federal cannabis banking reform in 2025.

CLAIM Act. The Clarifying Law Around Insurance of Marijuana Act provides a parallel “safe harbor” for insurers and their employees so they can insure state‑legal cannabis businesses without federal penalties.

Where Do Things Stand as of 2025?

• SAFER status: Reported out of Senate Banking (Sept 2023); advocates and a bipartisan group of state attorneys general pushed Congress again in July 2025 to bring it to a vote.
• SAFE status: Reintroduced in the 118th Congress (2023); prior House versions passed multiple times in earlier years but did not become law.
• CLAIM status: Introduced in the 118th Congress; not enacted to date. Insurers continue to support it as the cleanest legal protection for writing cannabis risks.
• Appropriations setback (context): In June 2024, House negotiators removed cannabis‑banking protections from a key spending bill—illustrating the stop‑start nature of reform.

Why Does Banking Reform Matter to Insurance?

Less cash = less crime exposure. Cash‑heavy operations increase robbery risk and internal‑theft exposure. Banking access allows electronic payments, armored‑car reconciliation, and better loss controls.

Better data = better underwriting. Banked clients have auditable revenue histories, payroll records, and vendor trails—inputs that carriers use to price general liability, products/completed ops, property, inland marine, crime, cyber, and D&O/EPL.

More capacity over time. Clearer federal guardrails reduce perceived legal risk for carriers and reinsurers. Over time, this tends to expand available limits and refine forms, endorsements, and sublimits (e.g., product liability for infused goods, crop/stock coverage, business interruption).

How Could Federal Rescheduling Interact with Banking & Insurance?

Rescheduling to Schedule III (if finalized) would not legalize adult‑use federally, but it would likely remove IRS Section 280E burdens—improving cash flow and financial ratios. Stronger financials plus banking access usually produce cleaner loss data and lower frictional costs. Important: MRB compliance duties under BSA/AML (including SAR filing types) remain until Congress changes the law or FinCEN revises guidance.

Who Benefits If SAFE/SAFER/CLAIM Pass?

• Cannabis operators: Checking/ACH/merchant services, payroll, equipment finance, and conventional loans reduce overhead and shrink cash risks.
• Insurers & MGAs: More reliable accounting and anti‑fraud controls improve pricing and claims handling; specialty wordings can evolve into admitted options where regulators permit.
• Communities & regulators: Greater transparency improves tax collection, public safety, and compliance oversight.

What Are the Main Challenges?

• Congressional gridlock: Despite broad support, floor time and coalition details (e.g., public safety, social equity asks) can delay votes.
• State–federal mismatch: Even with banking safe harbors, cannabis remains federally controlled; interstate commerce and federal programs still have constraints until broader reform.
• Compliance load: Banks and insurers must maintain BSA/AML, KYC, and suspicious activity reporting for MRBs until guidance changes.

Insurance Impacts You Can Expect (Short‑to‑Mid Term)

• Pricing & terms: Where cash risk falls and data quality rises, underwriters can justify tighter theft/crime sublimits, more nuanced deductibles, and, in time, more competitive rates.
• Form clarity: Clearer banking records support better sublimits and definitions (e.g., “stock,” THC/CBD potency documentation, track‑and‑trace alignment) for property and product liability.
• Capacity & reinsurance: Surplus lines will likely continue to lead, but more reinsurers may participate once federal guardrails are durable, especially if CLAIM passes.

Practical Steps for Cannabis Businesses Now

1. Strengthen cash controls: Dual custody, daily reconciliation, smart safes, and camera/entry logs—then document these for your insurer.
2. Underwriting package: Prepare clean P&L and bank statements (where possible), security layouts, vault specs, alarm/UL‑certs, transport protocols, and product testing/recall plans.
3. Update coverages: Re‑evaluate limits and endorsements for products liability, property/stock, crime, business interruption, cargo/inland marine, D&O/EPL, and cyber.
4. Compliance alignment: Maintain BSA/AML‑friendly policies (KYC, vendor screening, SAR awareness). This facilitates banking—and helps during insurance audits.
5. Plan for rescheduling scenarios: Model cash‑flow changes if 280E relief arrives and how that affects working capital, deductibles, and self‑insured retentions.

Quick Reference: What Each Bill Does

FAQs (Simple & Straightforward)

Does passing SAFE/SAFER legalize cannabis federally?
No. These bills protect financial services for state‑legal activity. They do not legalize cannabis nationwide.

Would rescheduling to Schedule III fix everything?
No. It could ease taxes (280E) and help investment/credit, but federal controls and BSA/AML duties continue. Banking and insurance compliance will still matter.

Will premiums drop immediately if SAFE/SAFER passes?
Not automatically. Expect gradual changes as cash exposure falls, data improves, and more carriers compete. Loss experience and security posture still drive pricing.

Do insurers really need bank statements?
They’re often requested because auditable revenue and payroll support accurate rating, fraud detection, and claims handling.

Can I get insured today without these bills?
Yes, typically in the surplus lines market. Capacity and terms vary by state, risk controls, and product type. CLAIM could broaden participation and standardize protections for carriers.

Sources (Outbound Links)

• Congress.gov — S.2860 (118th): SAFER Banking Act (reported to Senate, Sept. 28, 2023)
• Congress.gov — H.R.2891 (118th): SAFE Banking Act of 2023
• Congress.gov — S.1359 (118th): CLAIM Act (introduced Apr. 27, 2023)
• Multistate Attorneys General Letter Urging SAFER Passage (July 24–25, 2025)
• ABA Banking Journal — State AGs Back SAFER (July 25, 2025)
• MJBizDaily — Banking Protections Removed from House Spending Bill (June 17, 2024)
• Marijuana Moment — Committee Strips Banking Protections (June 13, 2024)
• Federal Register — DOJ/DEA Proposed Rule to Reschedule Marijuana (May 21, 2024)
• HHS Letter Basis for Schedule III Recommendation (Aug. 2023, released May 2024)
• Reuters — Potential Schedule III Impacts on Companies (Aug. 12, 2025)
• FinCEN Guidance FIN‑2014‑G001 — BSA Expectations for MRBs (Feb. 14, 2014)
• CSBS Examiner Job Aid — Marijuana‑Related Businesses (Mar. 13, 2025)
• NAIC — Cannabis & Insurance Topic Page (updated)
• NAIC Cannabis (C) Working Group Materials (Apr. 22, 2025)

By monitoring these developments, businesses and policymakers can better prepare for potential changes that could reshape the cannabis industry and its broader economic impact.

Disclaimer: Laws, regulations, and legislative proposals can change rapidly. The information provided here reflects developments as of 2025. Always consult legal or insurance professionals for the most current advice and policy details.