Identifying the cause of loss |
Bethany Bowers had a mess on her hand when she discovered that her tenants were marijuana farmers. Unfortunately for Bethany, the tenants grew the product in the basement of her house using grow lights and heat diverted from the furnace. The activity created moisture throughout the house which resulted in warped paneling and mold. When Bethany discovered the situation, she made a claim to her carrier who denied all mold-related damage. She sued arguing that because the mold was the direct result of vandalism, coverage should apply.
Click here to whether the appellate court agreed with the trial court or with the plaintiff?
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Insuring the marijuana industry |
The sale of marijuana for medical purposes is legal in 20 states and for recreational and medicinal use in seven states. However, it remains subject to federal prosecution in all states. This conflicting position has resulted in most industry leaders refusing to write marijuana industry businesses. Recently the American Association of Insurance Services (AAIS) developed a Businessowners Policy that could be used by carriers in the state of California. This could be the beginning of standardized language and coverage for the industry.
Click here to read the PF&M overview of the policy.
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What are the questions? |
The only way to find a market for a marijuana-related risk is to start asking questions and developing an application. Because of the interest in this industry, a newly developed narrative, questionnaire and supplement for Marijuana Dispensaries has been added to the Commercial Lines Survey. As with the AAIS coverage form, this is only a starting place. Additional exposures, hazards, and loss potentials will continue to be uncovered as losses occur and are aggregated.
Click here to review the newly introduced marijuana narrative.
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Are you staying up on marijuana issues? |
The Rough Notes Magazine has published several articles related to marijuana and will continue to do so because of how it is impacting the marketplace. The issues are not just about how to cover the marijuana growers and sellers, but also how to work with employees who are legal users of marijuana.
Click here for a 2018 article about marijuana in the workplace.
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