Cannabis Insurance

Stolen Corporate Funds

A small dispensary experienced an armed robbery costing them roughly $75,000 in inventory and $50,000 in cash. It was ultimately determined an employee was responsible for coordinating the robbery, but the insured was still unsure if their insurance policy would provide coverage for the loss. Fortunately, the insured’s cannabis-specific commercial crime policy provided coverage for the loss of securities located inside the premises resulting  directly from theft and the loss of property located inside the premises resulting from an actual robbery.

Real Estate

A real estate agent sold a building supposedly permitted and zoned for cannabis activity and confirmed as such when asked. The buyer of the property struck a deal with a cannabis  business looking to expand in that area and collected lease related earnest deposits and started other arrangements for the build out of the property. The sale went through. Later it was found the property was only being considered for permitting/zoning allowing for cannabis activity, but permission had not been granted. Ultimately, the buyer of the property sued the previous owner/seller for misrepresentation and included the real estate agent in their complaint. They also alleged loss of a business opportunity and the cannabis business tenant was considering legal recourse as well. Legal expenses incurred were over $250,000 with a settlement sure to follow.