The cannabis industry and the commercial insurance markets for it have seen significant growth over the past decade, although some insurance issues remain, according to Ian Stewart, chair of the national cannabis and hemp law practice at Wilson Elser Moskowitz Edelman & Dicker LLP in Los Angeles.
That growth has also brought additional exposures, Stewart said during a Monday session at Riskworld, the Risk Insurance Management Society Inc.’s annual meeting in Atlanta.
For certain lines, such as general liability, auto and workers’ compensation, there are many insurance companies and brokers for cannabis operators, said Stewart, who has been involved in cannabis legislation since 201
4. “Since then, there has been an explosion in the cannabis market,” he said.Still, areas like excess coverage and some specialty lines can be challenging, and the market remains largely surplus lines, he said.
As the market has grown, so have its exposures, Stewart said.
As the market has grown, so have its exposures, Stewart said. As manufactured products increase their share of sales, they bring with them product liability lawsuits. Until now, most of these processes have involved accessory liability.
It has also increased focus and research on the possible risks associated with cannabis use “We are starting to see science and medicine catch up with public policy and medicine,” Stewart said.
The American Heart Association has advised members to be cautious about the possible increased risk of cardiovascular problems associated with cannabis use, and other research has suggested a potential link between cannabis use and increased risk of mental health problems, Stewart said, citing two possible new exposures.
“Risk managers are needed for the cannabis industry,” Stewart said, noting that some larger operators in several states have formal risk management functions.
Source link
