washington state insurance analysis for recreational marijuana
DESCRIPTION
I-502 Draft Regulations is a dramatic change for cannabis operators. They'll be required to purchase product liability insurance.TRANSCRIPT
Washington StateRecreatonal Marijuana
WAC 314-55-082 Insurance RequirementsDraft I_502 Rules
Business Insurance Analysis
Draft Rules I-502 Insurance
Key Components of WAC 314-55-082● Requires Insurance● Protect The Consumer● Negligence, intentional act or omission of the
marijuana licensees● Licensee must provide certificate of insurance● Failure to provide proof of insurance will jeopardize
your license
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Type of Insurance● Commercial General Liability● Possible Umbrella Policy● Bodily Injury and Property Damage out of licensed
activity● Claims as may be caused by any act, omission, or
negligence of the licensee● Cover Bodily Injury , disease, illness, death, and
property damage
©2013 Greenpoint Insurance Advisors, LLC
Is Product Liability Needed?"The insurance shall also cover bodily injury, including disease, illness and death arising out of the licensee's premises/operations, products, and personal injury"
Our opinion--YES!
Since WAC 314-55-082 Draft Rules has specified products. Most Commercial General Liability policies are offered without products and completed operations coverage or product liability.
©2013 Greenpoint Insurance Advisors, LLC All Rights Reserved
Impact on Marijuana Business Owner
● Product liability is difficult to obtain due to limited carriers offering product
● Price will be an important factor● More comprehensive protection for the
cannabis operator● Purchasing coverage has positive impact on
public safety
©2013 Greenpoint Insurance Advisors, LLC
Impact on Insurance Industry● More insurance carriers willing to offer new programs
because of legalization? Not Sure! ● Insurance carriers have been reluctant due to federal
uncertainty and unable to evaluate potential exposure of offering products exposure
● Check back with us when Colorado opens 1st marijuana store on January 1, 2014
©2013 Greenpoint Insurance Advisors, LLC
Greenpoint Insurance Advisors, LLC11479 S. Pine Dr. Parker, Co 80134
303-841-8999
www.marijuanadispensaryinsurance.com