CANNABIS INSURANCE
Unfortunately , the passing of the Act still requires action from the Senate , where it has been in limbo since March 2021 .
Along with the increase in cannabis and CBD products have come many novel cannabis-infused products — including edibles and drinks — which increase risks of product liability and safety recalls . Due to the psychoactive effects of cannabis , the risk that products could be mislabeled or misrepresented and then represent a harm to users is also increased . While standard general liability plans would handle these claims for noncannabis businesses , many insurers are very hesitant to extend that to CRBs due to all of the uncertain legalities . Often , policy language must be specifically tailored to the cannabis industry for adequate coverage to be provided .
Individuals utilizing cannabis-related products also face unique insurance challenges . Users could be found to be at-fault in workers ’ compensation claims or subject to employment disqualification as a result of drug screening . Further complicating the issue could be medical providers and treatment options which prevent the use of cannabis in the treatment of patient conditions .
Automotive insurance rates can be elevated as well due to the influence of drivers using cannabis products . A lack of standardized methods of roadside detection of drug-impaired drivers is also an issue . Cannabis itself , the level imbibed , and the method of intake can all have radically different ways of manifesting in the user . Side effects and physiological reactions in users can also result in increased risk of misidentification of the status of a driver at the time of an incident .
With all of that in mind , insurance companies are left with a lot of uncertainty . Legal issues could arise at any point of the supply chain , and unique hazards are associated with the cannabis industry . The National Association of Insurance Commissioners ( NAIC ) formed the Cannabis Insurance Working Group in 2018 to make an effort to better understand coverage gaps and regulatory issues within the cannabis industry . Part of that included the adoption of the Understanding the Market for Cannabis Insurance white paper which was published in 2019 . Currently , they are placing a focus on the collection of aggregated insurance availability in addition to the coverage gap information mentioned before in an attempt to compile a report for release sometime in late 2021 .
Finding companies to provide insurance coverage for CRBs is a difficult issue . Currently , only around six insurers are even formally offering cannabis coverage . Compounding this issue is the federal legality , which has led to insurers and brokers to cease formally advertising services to CRBs . Many owners of CRBs only hear about insurance options through word of mouth from other CRBs . These issues , and all of the legalities surround the industry as a whole , make contacting an insurance professional an essential step in risk management . It never hurts to ask and can only benefit a CRB to find out what their options are one way or another . +
" INDIVIDUALS UTILIZING CANNABIS-RELATED PRODUCTS ALSO FACE UNIQUE INSURANCE CHALLENGES . USERS COULD BE FOUND TO BE AT-FAULT IN WORKERS ’ COMPENSATION CLAIMS OR SUBJECT TO EMPLOYMENT DISQUALIFICATION AS A RESULT OF DRUG SCREENING ."
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