Tag Archives: cannabis

D&O insurance for the cannabis industry

By Jake Ziering and Marc Hauser on Posted in Cannabis, D&O, E&O, Professional Liability, Insurance Coverage, Insurance General
Cannabis and the D&O market in 2022 In the early days of 2022, cannabis companies and investors have cause for guarded optimism. The once very real specter of federal intervention in the burgeoning industry seems to have faded into the background as successive presidential administrations have declined to push the issue, and now, all but … Continue Reading

Are you covered? Cannabis industry must prepare for cyberattacks in 2020

By Mike Sampson on Posted in Cyberliability, Insurance Coverage, Insurance General, Insurance News of Note
Experian Data Breach Resolution (Experian) has identified its “top data breach trends of 2020,” and the cannabis industry should take note. In its “Data Breach Industry Forecast 2020,” Experian predicts that “we will see many burgeoning industries, such as cannabis retailers, cryptocurrency entities, and even some environmental organizations targeted for cyberattacks as a result of … Continue Reading

In historic vote, U.S. House passes SAFE Banking Act; but, what will U.S. Senate do?

By Mike Sampson and Zachary S. Roman on Posted in Insurance Coverage, Insurance General, Insurance News of Note
In a historic moment, the U.S. House of Representatives, yesterday, voted 321 to 103 in favor of H.R.1595, the Secure and Fair Enforcement Banking Act of 2019, also known as the “SAFE Banking Act.”  If ultimately enacted into law, this legislation would provide insurers, as well as banks and other institutions, a “safe harbor” to … Continue Reading

Review state cannabis regulations for insurance requirements

By Mike Sampson on Posted in Commercial General Liability, Insurance Coverage, Insurance General, Insurance News of Note
Like any business, a business operating in the U.S. cannabis industry needs both first-party and third-party liability insurance.  Unlike other types of businesses, however, a cannabis-related business’ insurance needs may be dictated at least in part by state regulations.  Although not every state that has legalized cannabis for medical and/or adult use has promulgated specific … Continue Reading

Federal court’s E-Cig decision provides cautionary tale

By Mike Sampson on Posted in Commercial General Liability, Insurance Coverage, Insurance General, Insurance News of Note
Every policyholder in every industry should make sure that it in fact has obtained insurance covering the actual, specific risks presented by its line of business. That point is the critical one driven home by the U.S. District Court for the Central District of California in United Specialty Insurance Company v. E-Cig Vapor Emporium, LLC, … Continue Reading

Federal crop insurance grows: Hemp to be covered

By Mike Sampson and Adam D. Brownrout on Posted in Insurance Coverage, Insurance General, Insurance News of Note
Federal crop insurance will soon be available for hemp.  The federal Agriculture Improvement Act (H.R. 2) (the Act) – which has been approved by both houses of Congress and is now just awaiting the president’s signature – will amend the Federal Crop Insurance Act, 7 U.S.C. §1501, et seq., so that hemp will be a … Continue Reading

CannaBeware: Make sure insurance actually covers the risks your business faces

By Mike Sampson on Posted in Commercial General Liability, Corporate and Transactional Insurance Coverage, D&O, E&O, Professional Liability, Insurance Coverage, Insurance General, Insurance News of Note, Property Damage & Business Interruption
It should go without saying that when a business purchases any insurance policy – including, but not limited to, a commercial general liability (CGL) insurance policy – the business expects the policy to provide coverage for its line of business and the specific risks it faces. Cannabis-related businesses are no different. However, they must be … Continue Reading

Final Mass. “adult-use” marijuana regulations require “Marijuana Establishments” to have liability insurance

By Mike Sampson and Kristy L. Keiser on Posted in Commercial General Liability, Insurance Coverage, Insurance General, Insurance News of Note
As part of its “adult-use” marijuana regulations, which are expected to take effect next week, the Commonwealth of Massachusetts will require that “Marijuana Establishments” – which include cultivators, manufacturers, and retailers – procure commercial liability insurance in established amounts. Massachusetts’ new regulations are the most recent reminder that cannabis-related businesses must be aware of state regulations and their … Continue Reading

Should the Cannabis Industry Fear the Sixth Circuit and K.V.G.?

By Mike Sampson on Posted in Insurance Coverage, Insurance General, Insurance News of Note, Property Damage & Business Interruption
Although any case has the potential to go sideways, the appeal in K.V.G. Properties, Inc. v. Westfield Insurance Company – which involves a policyholder’s right to insurance coverage for property damaged by a third party’s marijuana growing operation – should not be cause for alarm in the cannabis industry. As driven home by the opening … Continue Reading

Marijuana and the “Illegal/Dishonest Acts Exclusion”: Making Sense of K.V.G. Properties, Inc. v. Westfield Insurance Company

By Mike Sampson on Posted in Insurance Coverage, Insurance General, Insurance News of Note, Property Damage & Business Interruption
A recent federal court decision in “a property loss insurance case” involving the unauthorized growing of marijuana could have a negative impact on the enforceability of insurance policies sold to legitimate marijuana-related businesses. How much of an effect remains to be seen, but there is reason to think it should be minimal. At issue in … Continue Reading

In Wake of Disasters, Do Not Just Assume No Coverage Available for Cannabis-Related Losses

By Mike Sampson and Cristina Shea on Posted in Insurance Coverage, Insurance General, Insurance News of Note, Property Damage & Business Interruption
As reported extensively in the media over the past week, the cannabis industry has been hit hard by recent natural disasters. While companies doing business in this industry may face some unique challenges in purchasing insurance, and when attempting to obtain coverage for losses, insurance coverage – contrary to certain media reports – nevertheless may … Continue Reading
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