By: Mikaela Whitman and Jacquelyn Mohr In recent years, the cannabis industry has experienced unprecedented growth and transformation. In 2017, the cannabis industry generated nearly $9 billion in annual sales and by 2022, some project that number will increase to an estimated $80 billion.[1]As the cannabis industry continues to grow and diversify, cannabis businesses will encounter […]
Insurance
Cannabis Firms See Jump in Insurance Costs to Protect Leaders as Investors Sue
TORONTO — Canadian and U.S. cannabis companies are facing a spike in already high costs of insurance to protect top executives from personal liability, following a slew of lawsuits by disgruntled investors alleging fraud and misinformation, with more such action expected. Some of the biggest cannabis companies, including Medmen Enterprises, Canopy Growth, CannTrust Holdings, Aphria […]
The Impact of the COVID-19 Crisis on Cannabis Business Insurance
It has become painfully clear that the current Coronavirus pandemic has not left a single sector of American business untouched, and that includes the United States’ burgeoning legal cannabis industry. While many cannabis businesses across the country have remained open—a result of most states designating them as “essential”—industry experts say that everything from dispensaries to […]
Managing employer risk in the age of the coronavirus – Part 1
Companies that address federal and state worker safety obligations could see fewer claims and fare better in litigation. During a pandemic, the transmission of infectious disease can be anticipated not only in healthcare settings but also in many types of workplaces. Given the likelihood of potential COVID-19 exposure across numerous industries, every employer should understand […]
Anatomy of a Cannabis Insurance Policy: Exclusions
By Jonathan Bench, Attorney @ Harris Bricken Previously I wrote about insurance generally (see here) and products liability insurance specifically (see here). Today I want to look at some policy exclusions to point out potentially problematic terms that you may notice when reviewing your insurance contract during your annual insurance audit. First, I need to […]
USDA Announces Details of Risk Management Programs for Hemp Producers
PRESS RELEASE WASHINGTON, D.C., February 6, 2020 – The U.S. Department of Agriculture (USDA) today announced the availability of two programs that protect hemp producers’ crops from natural disasters. A pilot hemp insurance program through Multi-Peril Crop Insurance (MPCI) provides coverage against loss of yield because of insurable causes of loss for hemp grown for […]
Vaping Crisis Implications for Cannabis Industry Regulation and Risk Management
The vaping industry is under fire after an increasing number of injuries and deaths have been linked to the use of vaping products. The growing crisis has major implications for the cannabis industry from both a regulatory and risk management perspective. Breakdown of the Vaping Crisis The crisis comes in the wake of an ongoing […]
Cannabis Business Basics: Product Liability Insurance is a Nonnegotiable Priority
By Jonathan Bench, Attorney at Harris Bricken With Juul recently in the news and vaping bans going into effect around the country (see our recent coverage here, here, here and here), marijuana companies have been asking us questions about what to expect in the near term. In the midst of this uncertainty, we have been stressing […]
Cannabis Industry Continues to Mature, But Getting Title Insurance Still Problematic
By: Leo G. Aubel, Partner, Howard & Howard As conflicting state and federal laws regarding cannabis production, distribution, sales and marketing continue on their collision course, two major hurdles for the U.S. cannabis industry have come into focus: banking and title insurance. The purchase, sale, lease, and use of real estate by the cannabis industry in […]
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 […]
