Watching out for 'potholes'

One of the issues we have been monitoring for a while now involves the gradual legalization of marijuana. As more states legalize it for medical and recreational use, the federal government still considers it a Schedule 1 drug, meaning it has no recognized medical use and has a higher potential for abuse or misuse.

For insurers, this conflict creates some risk in terms of providing coverage to marijuana-based entities because of the lack of federal guidelines. The patchwork of differing state regulations also makes it difficult for carriers operating in multiple jurisdictions because enforcement varies from state to state.

So far, Claims Magazine has held two webinars addressing the issues arising for insurers related to legalized marijuana. The first provided a broad overview of the issues from an insurance, legal and workers’ comp perspective and generated dozens of questions from the audience, which we addressed in the second webinar.

We’ll hold our third webinar in the series this week on Thursday, Oct. 24th at 2 p.m. ET to address the specific issues cannabis-touching companies operating as growers, manufacturers, distributors and retailers face. Many of these are similar to other commercial enterprises, but they do face a number of unique risks.  We will take an in-depth look at the types of coverage required by these entities, the risks involved and the opportunities they present for insurers looking to expand their coverage products. We’ll also update the industry on how the SAFE Banking Act could affect insurers venturing into this new area.

Joining us for the webinar will be:

• Kieran O’Rourke, Vice President and Director of Underwriting, Cannasure Insurance Services
• Steven Sherman, J.D., Vice President, PSA Insurance and Financial Services
• Stanley Jutkowitz, Senior Counsel, Seyfarth Shaw
• Taite R. McDonald, partner, Holland & Knight

Cannabis is recommended (it cannot be prescribed) for a number of health-related issues. For insurers paying workers’ compensation claims, the question becomes — is cannabis a covered treatment? If so, for how long? Details about its use, efficacy and risks are relatively unknown due to the lack of scientific information available. In addition, what are the physical and legal risks to employees who use medical marijuana? How do zero-tolerance policies affect medical use by employees? How can an employer tell if an employee is impaired and what are the workplace risks?

Our November 19th webinar will look at a number of issues related to the use of medical marijuana for workers’ comp injuries, considerations and coverage questions for insurers, provide answers for employers on applying drug policies and look at other risks for employees, employers and insurers in the workplace.

While insurers may not be receiving cannabis-related claims at this point, they are on the horizon — product liability claims, coverage issues for property, theft and employment-related issues at the very least. The more you know, the better you can prepare for what’s ahead.

Related:

• The business implications of legalized cannabis
• What employers need to know about the U.S.’s evolving marijuana laws