U.S. pot insurance has Canadian growers green with envy

Business | 206695 hits | Apr 10 8:35 am | Posted by: wildrosegirl

The growing medicinal marijuana business in the United States despite the drug's illegal status has many insurance firms seeing green -- as in money.

Comments

by andyt
Sun Apr 10, 2011 4:48 pm
I wonder how far off full legalization really is in the US, with so many states now haviing a very well developed medical pot industry. I beleive individual states have also decriminalized pot. Wonder if we could copy that up here without having to go thru the inertia of federal laws?
by CommanderSock
Sun Apr 10, 2011 4:55 pm
Remember when Paul Martin was about to decriminalize it, those were the good days.

Then came Harper's conservative minority in 2006 and his ideological head strong impulses caused a complete reversal of that policy.

Just legalize it already.
by Anonymous
Sun Apr 10, 2011 6:19 pm
A Greenpoint insurance package provides liability protection and product liability protection, so if someone gets sick from the medicinal pot sold at a dispensary, they can get compensation.
...
"We haven't experienced an overabundant amount of claims," he said. "But typically, theft is the No. 1 use of the policy. We just about a month ago paid a $25,000 claim where they stole medicine."
...
They don't cover home growers, according to Woods, because people are encouraged to grow in warehouses and industrial areas to avoid the dangers of fire and criminal activity that come with growing a crop in a residential neighbourhood.

The insurance companies should insist on permits and inspections for these things too, which would be a good thing because Health Canada isn't.
by QBall
Mon Apr 11, 2011 2:27 pm
At present, Olson said government-approved growers could try to get coverage under the standard homeowner policy because they aren't breaking the law. But certain exclusions or limitations would apply.

Ms. Olson is out of her mind. No Homeowner's insurer in Canada is going to provide coverage for a farm operation, even less so when the farm operation is legal cannabis. Farms are insured under farm policies due to their unique exposures which sets them apart from your regular Homeowner's policy. Even then no standard insurer is going to want to insure a cannabis farm due to high chance of break and enter on the premises. Insurance to cover crops is a separate policy altogether. I doubt many crop insurers (like Agricorp) are going to want to touch a high target crop like cannabis, and I seriously doubt there are enough legal growers for them to form a reciprocal or a mutual company. While I sympathize with Mr. Mellace's situation he should have known this going in. It's like a jewellery store owner complaining about how many time they've been robbed.

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