Thursday, March 14, 2019
Marijuana laws are undergoing a rapid transformation. Although still criminal at the federal level, 33 states and D.C. have authorized medical marijuana and 10 states and D.C. have authorized it for recreational use. The business incentives are certainly there. Expected revenue from marijuana businesses in 2019 is projected at $13.7B, and will grow to $22.1B in 2022. One problem involves insurance. Commercial general liability, property liability, and products liability policies often provide only $1M per occurrence and $2M in the aggregate. According to a report released yesterday by A.M. Best, that may be insufficient for marijuana businesses. Moreover, because this is an emerging market, insurers are inclined to stick with the limits. Business Insurance has details.