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Hail the size of golf balls came crashing through windows and roofs from a recent hail storm in Colorado. As a result, cannabis licensees and building owners who rent to them are likely to see an increase in hail deductibles in Colorado. Even more concerning, we’re aware of one cannabis specific insurance carrier that excludes hail and wind damage. This means your claim could be denied. Not a good surprise, if you’re insurance broker failed to notify you of this type of exclusion.
Claims for damaged roofs, buildings, heating and air conditioning, and windows disrupted many marijuana operations. Not only financial damage from property, but potential loss of income or additional expenses. These types of losses can easily approach 6 figures.
For indoor cultivators, the heating and air conditioning systems are expensive and necessary for maintaining the correct level of temperature and humidity while growing cannabis. These units can easily cost $20,000 and installed on the roof makes them vulnerable to the weather.
Other claims may involve new roofs, windows, and equipment damaged when windows broke. With the number of claims being filed, the indication from our underwriters is deductibles will rise to allow recovery by the insurance carriers due to their heavy losses.
For those who haven’t experienced a hail loss now maybe the time to review your property insurance to determine if a separate deductible applies to hail damage. Even more importantly, a review of the insurance policy is warranted to determine if hail has been excluded. Always find a competent and licensed insurance broker in your state of operation.
©2017 Greenpoint Insurance Advisors, LLC Just imagine you own a marijuana retail operation buying your product from several dozen growers. You decide to apply for product liability insurance as you’ve developed a concern if a lawsuit or claim was to arise from your product sold into the stream of commerce was to affect your company. … Continue Reading
The association for Colorado insurance brokers and agents Trusted Choice takes on the subject of marijuana and insurance. According to CEO Bryan Bernier, the subject of marijuana from those out of state is a popular subject of conversation. We thank Trusted Choice for the opportunity to contribute to their monthly publication. It’s only fair… Continue Reading
Due Diligence: Insurance Carriers Interested in Insuring the Cannabis Industry With several states including California legalizing marijuana, there has been a renewed interest from insurance carriers considering insurance coverage for cannabis operations. In fact, we most recently had the opportunity to meet with east coast insurance executives eager to learn more about insuring the cannabis… Continue Reading
©2016 Copyright All Rights Reserved The latest underwriting requirement from a major cannabis product liability insurance carrier has them saying no to cannabis companies that apparently manufacture or distribute foreign vendor products such as vape pens. The majority of the cannabis industry most likely buys vape pens from China. Essentially, the insurance carrier is… Continue Reading
Use an Experienced Insurance Agent when Purchasing Cannabis Commercial Insurance In this video, cannabis business lawyer Mr. Bob Hoban from Hoban & Feola, LLC offers his perspective for cannabis business owners on procuring the right types of business insurance. Mr Hoban suggests starting with an experienced insurance professional that specializes in the marijuana industry. … Continue Reading
Washington Liquor and Cannabis Licensing Board Provides Guidance The Washington State licensing department has confirmed with Greenpoint Insurance Advisors, LLC after our request, product liability insurance is not required for I-502 licensees. Washington Liquor and Cannabis Board licensing representative indicated the following : The statutes do not require a marijuana business to have product liability… Continue Reading
But, proving the right type of coverage exists can be difficult There are many consultants in the cannabis industry who offer professional services when their advice as a consultant is relied upon by others. They could offer advice for testing, cultivation, and compliance. Historically, the need to prove these consultants were insured was overlooked either… Continue Reading
Testing Required for Product Liability Insurance The majority of cannabis product liability insurance companies now require their applicants to test their product. This means your cannabis product has been tested at an independent lab or possibly in-house depending on the insurance carrier. If you don’t test your product, the insurance carrier will decline your insurance… Continue Reading
THE GREEN EARTH WELLNESS CENTER, LLC , Plaintiff V. ATAIN SPECIALTY INSURANCE COMPANY, Defendant Avoids Trial ©2016 Greenpoint Insurance Advisors, LLC A lawsuit filed by Green Earth Wellness Center LLC (“Green Earth”) against their insurance company has been settled according to court documents. The original complaint filed by Green Earth sought relief for breach of… Continue Reading
DISCLAIMER: Material presented by Owner website is intended for information purposes exclusively. It is not meant for professional insurance or legal advice, to induce or solicit new clients, and shall not be construed as such. Each individual situation is unique and requires a licensed insurance broker or attorney in your state to evaluate and recommend insurance or provide legal advise respectively. Each insurance company, policy, and broker are unique with their terms,conditions, and product offerings placing the responsibility of the user to conduct and rely on their own due diligence.