Mainstream insurance companies should start crafting policies to cover legal marijuana businesses as the industry grows, a report in an insurance trade publication recommends.
Rec legalization will have a “profound impact” on various types of insurance including personal, commercial, workers’ comp, product liability and healthcare plans, according to PropertyCasualty360.com.
Insurance companies can deny claims because marijuana is federally illegal, and a contract covering illegal items is unenforceable. But rejecting a claim is “unwise,” the site said, because state laws covering the cannabis industry often say that insurance contracts are enforceable despite federal marijuana scheduling.
