Cannabis and Insurance: Assessing the Insurance Coverage, Regulation and Risk Management Implications

March 13, 2019 9:45am

Michael M. Sevi
Deputy Chief Compliance Officer
Marsh & McLennan Companies, Inc. (New York, NY)

Taite McDonald
Partner
Holland & Knight LLP

Ian Stewart
Attorney at Law
Wilson Elser Moskowitz Edelman & Dicker LLP

More than half of U.S. states have legalized some form of medical or recreational marijuana use, causing a dramatic increase in the demand for cannabis. As the industry grows, it is becoming more and more clear that there is a need for standardization and legal protection in the form of cannabis insurance. The division between state and federal laws, however, makes it difficult for businesses to receive inclusive, affordable coverage, and cannabis-using consumers face their own insurance challenges ranging from legality issues to restrictive plans with coverage deficiencies. Join this panel for an in depth discussion of the burning questions on the minds of insurers, including:  
  • What are the challenges for brokers and insurers being asked to provide property, liability and workers compensation insurance to medical and recreational marijuana growers, distributors and retailers?
  • How is legalized marijuana affecting auto insurance rates in “weed-friendly” states?
  • What are the insurance needs and gaps as the insurance industry evolves to provide protection for new risks?
  • How are the different state regulators viewing and responding to this issue?
  • What action is been being taken by NAIC and PCIAA in response to rising marijuana legalization?
  • What challenges arise in the handling of claims related to marijuana use given the disconnection between state and federal laws?