In traditional industries with professionals such as accountants, lawyers, and doctors, there is an expectation of specific knowledge and professionalism. Businesses and families rely on their accountants to help them file taxes and set up businesses to minimize their tax liability while staying compliant with the rules and regulations set by the IRS. Clients depend on their lawyers to know specific areas of law and rely on their advice to make legal decisions that may impact the rest of their lives. Patients place their lives in doctors hands with diagnosis and medications, anticipating positive results to their various ailments. The cannabis industry has various professionals that are also relied upon for their knowledge and expertise and like all responsibilities that come with being a professional, when a mistake is made the consequences can be drastic. Cannabis businesses owners such as marijuana growers must protect themselves with a form of cannabis insurance, specifically professional liability insurance.
There are multiple forms of cannabis insurance that can help a cannabis businesses owner manage risks, but for the various professionals in the industry such as growers and consultants, professional liability cannabis insurance is a valuable tool to mitigate risk. In Colorado a couple has been granted the right to sue a marijuana company for it’s use of pesticides on it’s marijuana plants. The company is now facing a possible class action law suit and unspecified damages that could potentially cost large amounts of money that few businesses can afford to lose. If the company in question is properly insured, they should be able to minimize their exposure in this instance, but it should be noted that there are policy limits to all policies, and not all occurrences or liabilities may be covered.
The lawsuit against LivWell Inc. by Brandan Flores and Brandie Larrabee seeks class-action status and alleges the company for years inappropriately used Eagle 20, a heavy-hitting pesticide with myclobutanil that kills a variety of pests endangering the plants.
“In a larger sense they’re saying the marijuana industry can’t go on unchecked and someone has to do something to stop these people from using Eagle 20 and other harmful pesticides,” said Steven Woodrow, their attorney.
The two claim damages for an unspecified amount of money they overspent to buy the marijuana they say should have sold for a lesser price because of the pesticide.
LiveWell Inc. and the situation in Colorado is the exact reason cannabis business owners cannot ignore cannabis insurance. The cannabis industry is in it’s infancy and will face many challenges in the near future. S2S Insurance Specialists can help cannabis business owners evaluate potential risks and put together a plan that protects the business from all angles. Cannabis insurance is new in the sense that the end product is new to the world of insurance, but the business models, the guiding principles of risk management and underwriting are not new. S2S Insurance has experienced insurance professionals that can help business owners protect their investments and livelihoods. It is also important to remember that regardless of what type of cannabis insurance policy you have, coverage limits will apply. You must read your policy with both your agent and your attorney to determine what your coverage consists of.