Claims - March 2018

Le af : s hu t e r s tock .co m/ B yNi r dal A r t; S to r ef ron t : s hu t t e rs t ock.c om /Al ex an d e r Tol s t ykh

Marijuana retailers are part of a small community. They have regular and sometimes unusual customers. The industry is presenting opportunities for companies to provide support to marijuana businesses. From banking to transportation, there are significant challenges for this new and controversial business sector.

As an alternative to opioid misuse and abuse, this sector is growing, quite literally. Like all businesses, there are significant investments of time and resources required. With that comes the need to protect that investment with insurance policies tailored to fit the customer’s need.

Insuring marijuana risks

From the acceptance of risk by insurance companies and written policies come the natural potential for subsequent claims. These businesses are susceptible to claims to their buildings and their inventory.

They will also be likely targets for claims
for liability to others arising out of their
normal operations. Claims professionals
must be prepared to assess risks and ex-
posures and address these unique insur-
ance customer needs.

In a recent exposure for a legalized marijuana retailer, a customer presented a complaint to a store manager about a product he purchased at the establishment. The customer was dissatisfied with the product. The manager attempted to address the concern and provide alternatives.

The customer remained dissatisfied and continued to become more agitated. The manager kept a calm demeanor and politely asked the customer to leave. When the customer chose not to leave, the manager threatened to call the police.

At that point, another customer stepped in. This customer verbally engaged the troubled customer, eventually convincing him to go outside. Once outside, words continued to be exchanged.

A store employee was nearby and wit-
nessed the exchange between the angry
customer and the regular customer. In
full view of the surveillance camera, the
angry customer threw a punch at the reg-
ular customer. The police arrived shortly
after and the altercation was contained.

Keys to investigating
cannabis claims

Thankfully, claims adjusters are prepared to get out in the field to investigate these exposures. With good reason, this insurer outsourced the investigation to an independent insurance adjuster to investigate the reported liability exposure.

Hire an independent adjuster for field investigation. Local experienced independent adjusters are a wise investment for a good field investigation.

Investigate thoroughly and secure relevant evidence. Our firm had the opportunity to investigate just such a claim. This retailer proved to have a reasonable system in place to provide a solid foundation for the investigation.