Greyling Insurance Brokerage & Risk Consulting (Greyling), a division of EPIC Insurance Brokers & Consultants (EPIC), has launched a nationwide site pollution liability insurance program for the emerging cannabis industry.
Available in states where cannabis is legal for recreational and medical use, the new EPIC program is designed to provide coverage for a material gap in commercial general liability and umbrella/excess liability policies for the cannabis industry, as these policies exclude losses resulting from pollution/pollutants on, at, under, or emanating from an insured location.
The EPIC/Greyling Cannabis Site Pollution Liability (CSPL) insurance program protects growers, processors and retail dispensaries from claims alleging third party bodily injury and property damage liability claims as well as corrective action costs (investigation/cleanup costs) at or from an insured site. Minimum premiums for the program for annual policies start at $4,000.
Cannabis growers are exposed to pollution liability claims resulting from fertilizers and other chemicals used in the growing process (indoors or outdoors). Cannabis processors commonly use chemicals like ethanol to produce oils and concentrates and to extract CBD from the product and face exposure from these operations, as well.
Retail dispensaries face pollution exposure from building heating/cooling systems, building maintenance and other operations, and are increasingly required to provide evidence of pollution liability coverage to landlords. The EPIC/Greyling CSPL program is designed to provide protection to all of these operations.
Program features include:
- Automatic additional insured where required by written contract (e.g. lease of premises)
- Automatic waiver of subrogation
- Corrective action costs include those recommended by an environmental professional
- Coverage included for civil fines, penalties or assessments arising out of a pollution condition where allowable by law
- Natural resource damages included in definition of property damage
- Mitigation (emergency) expense coverage for costs incurred within 7 days of a pollution Incident
- Terrorism coverage automatically included
- Defense expenses for third party bodily injury/ property damage liability claims and for corrective action costs
- Illicit abandonment included in definition of pollution incident
- Manuscript cannabis endorsement with broad definition of cannabis products
- Deductibles starting at $5,000 each pollution incident
- Fast quote turnaround
- Simple binding/policy issuance process
- Open to retail and wholesale agents and brokers
EPIC is a retail property and casualty and employee benefits insurance brokerage and consulting firm. EPIC has more than 2,600 team members operating from more than 70 offices across the U.S., providing property and casualty, employee benefits, specialty programs and private client coverages to EPIC clients.
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