I'm known for my penchant for the unusual and hot topics I find interesting. I've written on dead bodies, skunks, bed bugs, and break-ups, so it was no surprise to my co-workers when I became fascinated with the issue of medical marijuana.
Currently, 15 states and the District of Columbia have legalized marijuana for medical use, and in those states such business appears to be booming. But like any business, there are insurance issues.
I was fortunate enough to have a delightful conversation with Mike Aberle of Statewide Insurance Services MMD Insurance Group, a true leader in the field of insurance coverage for medical marijuana. Mike knows the field top to bottom, and stated that they are using standard forms and modifying coverage with endorsements and exclusions, and that good underwriting is critical to providing coverage.
Theft is obviously one of the biggest issues for growers, dispensers, and users alike. Good loss control is necessary before coverage can even be considered. Cameras, alarms, lights, and safes are essential, as well as frequent trips to the bank so that not too much cash is on premises. Underwriting guidelines are going to require such loss control measures before a grower or dispenser will be granted coverage.
There's not enough room in a blog to go into all the coverage issues. However, we will have an article in FC&S shortly that goes further in depth. Suffice it to say that this is a “growing” industry, and insurance will grow right along with it to provide coverage for the unique exposures it entails.
This blog post is meant to provide insights into insurance coverage issues in general, and does not necessarily account for the differences in law and practice in different venues. As such, the opinions expressed within should not be construed as legal advice for the unique circumstances of any particular claim or suit.
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