Like companies in any other industry, licensed cannabis companies typically carry insurance and sometimes find themselves at odds with their cannabis business insurers. Those companies purchase a policy to cover a specific risk for a stated premium and when that risk presents itself, their business insurers suddenly have fine-print explanations for everything. In these situations,
Data reveal a concerning increase in violent crime in many U.S. cities during COVID in 2020 and 2021. Increasingly, cannabis businesses, particularly dispensaries, are targets for robbery or other criminal activity. The reason that cannabis businesses are being hit particularly hard is not hard to fathom. Federal law still treats cannabis as a Schedule I
Many investors and cannabis businesses are keen on opportunities to participate in financing rounds. As with any other investment or business venture, financing rounds for cannabis operations carry various risks. Investors and businesses looking to participate in these financing rounds naturally wonder how to insure cannabis financing, and what insurance options are available to protect
If you are suing your cannabis insurer, read this first. The venue in which you plan to file is of the utmost importance. The status of marijuana as a schedule I narcotic has made cannabis insurance litigation a bit of a chess match. Many cannabis businesses enjoy the benefits of state legalization and the ability
These days, marijuana is constantly on the move in states with marijuana legal reform. As a result, marijuana theft in transit is not unusual (see here and here for example). Typically, licensees have to transport marijuana themselves or a licensed distributor does it on their behalf. Some of these companies may carry their own insurance
Many insurance coverage issues in the cannabis space are relatively new. From fire protection at farms to theft protection in transit, policyholders and insurers alike are facing novel situations applied to old policy language. In the insurance world, when a new or complicated situation presents itself, many insurers will conditionally accept coverage under a “reservation
Insurance issues in the cannabis space are multiplying daily as operations continue to expand across United States markets. Cannabis companies face the risk of operational losses as a result of fires, burglary, business interruptions, and myriad other events. Cannabis companies also pay hefty premiums on insurance policies to cover those very losses. Many companies discover,
Legal representation in disputes with insurers has become paramount for cannabis companies in an ever-expanding operational environment. Cannabis companies may seek to insure against risk of loss as a result of challenges such as unexpected fires, crop protection, business interruption, or adverse consumer reactions to products. In many instances, cannabis companies are even required to
Insurance is a key part of any business (or home). That is no less true in cannabis and several insurers—at least on West Coast—provide insurance for marijuana businesses as well as hemp. The barriers to purchasing insurance related to hemp, of course, decreased substantially following the enactment of the 2018 Farm Bill. But purchasing an
Insurance is a key part of any business, including cannabis businesses. As Jonathan Bench has explained: Insurance in the cannabis industry is big business, and business owners need to know what policies are available and what those policies cover. Why? Because in insurance policies, like all other business contracts (e.g. leases), the risk of a
