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California cannabis company receives historic $1 million insurance payout following fire

It’s believed to be the largest insurance award ever given to a legal marijuana business. Industry insiders also see the event as another indicator of how rapidly the legal cannabis industry has matured, and how much corporate America’s “take” on cannabis companies has changed.

Last month the Santa Barbara Independent reported that a Southern California cannabis cultivator received a payout of well over $1 million from an unnamed insurance carrier in Great Britain, for crop damages that the grower suffered during the massive Thomas Fire this past December and January.

Matt Porter, a vice president at Cannabis Insurance Professionals, a division of Brown & Brown Insurance and one of the largest insurance intermediaries in the world, helped to put together the policy that paid the claim. He tells The Cannabist that the policy’s language evolved from other agricultural businesses but was focused on some of the risks found specifically in the cannabis industry.

“This policy contained some wording related to what we consider atmospheric change, or contaminants coming into the greenhouse,” he said.

And that wording was fortunate, according to Porter, when ash from the Thomas Fire began “falling like snow” and seeping into his client’s cannabis greenhouses, contaminating the plants inside with toxic chemicals. [Read more at The Denver Post]

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