WIN Magazine - Fall 2017 - 21

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HEALTH INSURANCE
Medical marijuana has not been
approved by the FDA and is still a
Schedule 1 controlled substance and
health insurers are not required to cover
the costs for this treatment.

Commercial Lines
Coverages

GENERAL LIABILITY AND
PROPERTY COVERAGE
As the availability and number of dispensaries and products rise, the marijuana industry faces many of the same
exposures other industries face, including product liability losses.
In one of the first marijuana product
liability lawsuits filed, the family of a
Colorado woman who was murdered by
her husband after he consumed THC in
the form of edibles is bringing a wrongful death claim against the edibles
company alleging they "negligently,
recklessly and purposefully concealed
vital dosage and labeling information...."
The company vigorously denies these
assertions. This is one example of the
type of risks faced by this blossoming
industry (pun intended).
Other risks facing growers and dispensaries include: general liability - products

liability; property protection; business
income - extra expense; stock - inventory; crop - live plants; workers compensation; commercial auto; cargo; money
and securities; government actions; vendors; and special events. There are risks
facing insurers getting into the market
as well, such as the lack of historical
pricing and loss data for underwriting
purposes, as well as the conflict between
federal and state laws.

WORKERS COMPENSATION
Workers Compensation carriers have
traditionally denied reimbursement for
medicinal marijuana. In 2014, New Mexico
became the first state requiring employers
and insurers to reimburse injured workers for the cost of medicinal marijuana.
Maine recently became the second when
the Maine Workers' Compensation Board
affirmed two different administrative
law judges' awards reimbursing workers
for their medical marijuana expenses.
A division administrative law judge in
New Jersey issued an order requiring
reimbursement of an injured worker's
medicinal marijuana expenses. The New
Jersey case only applies to this specific
division and is not binding on other New
Jersey courts, but this clearly shows a

trend toward acceptance of marijuana for
the treatment of injured workers. In light
of our country's opioid epidemic, more
doctors are apt to prescribe marijuana
for pain management.

Complexities and
Opportunities
Legal marijuana is the fastest growing industry in the United States with
approximately $7 billion in sales in 2016.
It brings with it many complex social
and economic issues that will continue
to evolve as the acceptance for medical and recreational use grows. But the
industry also provides a great many
opportunities, especially in the areas
of risk management and insurance, for
those agents, brokers and insurance
carriers who are willing to set aside
personal prejudices and partner with
this new industry to provide the best
protection for all potential exposures
that only insurance can.
●
Beth Ossino is the Claims
Manager at Golden Bear
Insurance Company in
Stockton, CA. Contact her
at beth@goldenbear.com.

F A L L 2017 | 21


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Table of Contents for the Digital Edition of WIN Magazine - Fall 2017

Do Hurricanes Have a Silver Lining?
Underwriting Marijuana
The Cyber Insurance Conundrum
Writing Data Security Into Law
Gauging Risk, Reaping Reward
Simply Seamless
Moving to the Cloud: 3 Migration Strategy Models and the 6 R’s.
In the WIN-NER’s Circle
WIN Magazine - Fall 2017 - Intro
WIN Magazine - Fall 2017 - bellyband1
WIN Magazine - Fall 2017 - bellyband2
WIN Magazine - Fall 2017 - cover1
WIN Magazine - Fall 2017 - cover2
WIN Magazine - Fall 2017 - 3
WIN Magazine - Fall 2017 - 4
WIN Magazine - Fall 2017 - 5
WIN Magazine - Fall 2017 - 6
WIN Magazine - Fall 2017 - 7
WIN Magazine - Fall 2017 - 8
WIN Magazine - Fall 2017 - 9
WIN Magazine - Fall 2017 - 10
WIN Magazine - Fall 2017 - 11
WIN Magazine - Fall 2017 - Do Hurricanes Have a Silver Lining?
WIN Magazine - Fall 2017 - 13
WIN Magazine - Fall 2017 - 14
WIN Magazine - Fall 2017 - 15
WIN Magazine - Fall 2017 - 16
WIN Magazine - Fall 2017 - Underwriting Marijuana
WIN Magazine - Fall 2017 - 18
WIN Magazine - Fall 2017 - 19
WIN Magazine - Fall 2017 - 20
WIN Magazine - Fall 2017 - 21
WIN Magazine - Fall 2017 - 22
WIN Magazine - Fall 2017 - 23
WIN Magazine - Fall 2017 - The Cyber Insurance Conundrum
WIN Magazine - Fall 2017 - 25
WIN Magazine - Fall 2017 - Writing Data Security Into Law
WIN Magazine - Fall 2017 - 27
WIN Magazine - Fall 2017 - 28
WIN Magazine - Fall 2017 - 29
WIN Magazine - Fall 2017 - 30
WIN Magazine - Fall 2017 - Gauging Risk, Reaping Reward
WIN Magazine - Fall 2017 - 32
WIN Magazine - Fall 2017 - 33
WIN Magazine - Fall 2017 - 34
WIN Magazine - Fall 2017 - 35
WIN Magazine - Fall 2017 - Simply Seamless
WIN Magazine - Fall 2017 - 37
WIN Magazine - Fall 2017 - Moving to the Cloud: 3 Migration Strategy Models and the 6 R’s.
WIN Magazine - Fall 2017 - 39
WIN Magazine - Fall 2017 - In the WIN-NER’s Circle
WIN Magazine - Fall 2017 - 41
WIN Magazine - Fall 2017 - 42
WIN Magazine - Fall 2017 - cover3
WIN Magazine - Fall 2017 - cover4
WIN Magazine - Fall 2017 - outsert1
WIN Magazine - Fall 2017 - outsert2
WIN Magazine - Fall 2017 - outsert3
WIN Magazine - Fall 2017 - outsert4
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