Calif. approves first coverage for property owners leasing to cannabis industry
California Mutual Insurance Company was approved to add lessor’s risk coverage.
This story is reprinted with permission from FC&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.
The California Department of Insurance (DOI) has approved the first insurance coverage for commercial landlords that addresses risks specific to renting to cannabis businesses.
Commercial tenants
California Mutual Insurance Company was approved to add lessor’s risk coverage for property owners who are exposed to specific risks resulting from cannabis-related business activities of their commercial tenants.
“As insurance commissioner, my goal is to make sure all Californians have insurance protection — including the legalized cannabis businesses in California,” said the DOI’s commissioner, Dave Jones. “I want to make sure that when consumers shop in cannabis businesses, when investors and owners invest in cannabis businesses, when vendors sell to cannabis businesses, and when landlords rent to cannabis businesses, there is insurance coverage available to cover everyone from losses. I encourage more insurance companies to follow California Mutual Insurance Company’s lead and file insurance programs to fill the gaps in coverage for the cannabis industry.”
Dispensaries, labs, cultivation
According to the DOI, lessor’s risk coverage provides liability and property insurance for commercial property owners who lease building space to commercial tenants. Specific commercial activities and businesses addressed by this coverage include cannabis labs, product manufacturing, cultivation, and dispensary operations.
Steven A. Meyerowitz, Esq., is the director of FC&S Legal, the editor-in-chief of the Insurance Coverage Law Report, and the founder and president of Meyerowitz Communications Inc. Email him at smeyerowitz@meyerowitzcommunications.com.
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