The first two installments of this series examined some of the areas of insurance affected by the legalization of marijuana and took an in-depth look at the challenges facing many of these new cannabis-related businesses. While they operate similarly to other commercial enterprises, they also have very unique risks because of the nature of their companies and the value of their products.

• Legalized marijuana: Opportunity or time bomb? – Part 1
• Examining the risks of legalized marijuana — Part 2

As cash-based businesses, they have a higher risk of theft from employees and outsiders. Since many were started without bank loans or other traditional funding, the owners have a great deal invested in their company's success or failure.

Insurance coverage and regulations

The conflict between federal and state regulations continues to be an issue for carriers, financial institutions and even the business owners themselves.