MMD Insurance Services has launched products completed operations with health hazards coverage and removed the “marijuana and its derivatives”, explicitly and in writing, for cannabis businesses in concurrence with the arrival of retail cannabis sales in Colorado and Washington State.
With all the legal gray area surrounding cannabis, either as a medicinal product or a state-approved retail product, many questions remain unanswered, particularly regarding insurance claims. Landlords or legitimate users are frequently denied claims because their tenants were growing a controlled substance or their homes were raided by Federal authorities. Yet, with the explosive growth of the cannabis industry, and subsequent state requirements, manufacturers and producers of cannabis and cannabis products are increasingly accountable to consumers, should injury occur.
According to the Mike Aberle, MMD Insurance Services national director, MMD’s new endorsement gives insureds the option to have the exclusion to “marijuana and its derivatives” removed in writing.
“Most other policies don’t have exclusions to cannabis nor do they make any mention of cannabis,” says Mike Aberle, MMD Insurance Services national director. “These are issues with no legal precedent. Could a carrier claim Federal Law over State Law? Perhaps, but by removing this exclusion, in writing, manufacturers and producers have at least one more legal leg to stand on.”
MMD Insurance has worked with the top laboratories, medical practitioners, growers and producers across the United States to evaluate cannabis risk. Through years of research and industry collaboration, MMD has found what Aberle calls a “balance of good and bad risks” by maintaining underwriting and shaping the program to address an inconstant marketplace. MMD Insurance continues to look to appointed brokers, lawmakers, and leaders of the cannabis industry to develop future coverages and improve the protections afforded cannabis business and professionals.
Endorsed by the American Alliance for Medical Cannabis (AAMC), MMD Insurance Services develops specific insurance programs for marijuana retailers, cultivators, manufacturers, dispensaries, collectives, cooperatives, caregivers and professionals across the nation. MMD provides complete lines of insurance options for insurance agencies in all states permitting the use of marijuana for recreational or medicinal purposes, with filings in all 50 states.