Category Archives: Breaking Insurance News

Insurance Requirements for Medical and Recreational Marijuana Transporter

Colorado Law Now Requires Marijuana Transporters be Licensed to Move Product

©2017 Greenpoint Insurance Advisors, LLC

Recently, Colorado House Bill 16-1211 was signed into law requiring medical and recreational marijuana transporters to hold a state issued licensed.  Using company vehicles, these businesses provide transportation of cannabis product from licensees and may offer the ability to store product at their business location or distribution point. 

Colorado House Bill 16-1211 Marijuana Transporter Insurance

As a condition of their license, a transporter must have insurance.  The law is silent as to the type of insurance, but in our opinion the purchase of commercial automobile insurance would be a minimum requirement with possibly commercial liability and property insurance particularly if the licensee maintains a storage or distribution facility.

A question that should be raised is how will the cannabis product be insured or covered during transportation or storage?  This will be a difficult issue to address through insurance as carriers offering commercial automobile or business property have avoided insuring the property of others when being transported or off premises.   

Contract Between the Licensees is Pertinent if Marijuana Product is Stolen or Lost during Transport

Absent insurance coverage,  the recreational and medical marijuana licensees will need to rely on established marijuana transporters to effectively and safely move their product.  The contracts between the parties will be critical in determining the responsibilities of each side should the cannabis be damaged or stolen during transport. 

 

If the contract offered by the marijuana transporter releases them of liability should the product be lost, damaged, or stolen during transportation or storage, the cannabis licensee will need to contemplate their business relationship and practices with the marijuana transporter. 

Furthermore, it would be prudent the contract is reviewed by an attorney to determine the obligations, damages, and potential remedies should the marijuana transporter negligently transport product or hold for safekeeping.   

 

 

      

 

 

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New Product Liability Insurance Coverage Around the Corner for Marijuana Companies!

We just received word from our underwriting groups that more insurance carriers are just around the corner from offering product liability insurance for cannabis companies.  This product segment has been severely limited with one underwriting group dominating this segment with complex and misunderstood underwriting standards operating as a monopoly, in our opinion.   Consequently, more competition… Continue Reading

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Is The Admitted Insurance Market Ready to Insure Pot?

The Golden State Could Be a Game Changer for the Marijuana Insurance Industry Breaking news out of California when The Californian reported California Insurance Commissioner Dave Jones wants admitted insurance carriers to insure marijuana.  This will not be an easy task for Commissioner Jones considering the fact Lloyds of London does not offer insurance to… Continue Reading

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Trending in Marijuana Insurance–You Must Buy Two Insurance Products Tied Together as a Condition of the Sale

Insurance Carrier Mandating General and Product Liability Be Bought Together ©2017 Greenpoint Insurance Advisors, LLC Just imagine you visit an appliance store to buy a washer.  The salesperson says you must buy a dryer or we won’t sell you the washer.  Our store policy is to sell both appliances together.  You tell the salesperson your… Continue Reading

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Trusted Choice Colorado Insurance News: The Cannabis Conundrum To Insure (Are You Sure?)

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

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Cannabis Product Liability Insurance Carrier Declining Applicants who Manufacture or Distribute Foreign Made Vape Pens

©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

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Washington I-502 Cannabis Licensees Not Required Statutorily to Buy Product Liability Insurance

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

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More Pot Consultants Being Asked to Prove Are They Insurance Worthy

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

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Don’t Test Your Cannabis? Product Liability Insurance Carriers Will Just Say No

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

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SETTLED! Lawsuit Against Insurance Carrier Over Pot Plants, Bad Faith, and Breach of Contract not Going to Trial

 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

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