Seizing upon what looks to be a definite growth industry, one man is stepping forward to be the first to offer liability insurance for producers of prescription pot.
“What we’re doing with Creative Edge Nutrition is specifically in the marijuana liability insurance and risk management area for North America, for licensed producers, dispensaries, grow facilities, and the prescribers,” says Bill Chaaban, CEO of Creative Edge. “Creative Edge Nutrition is now the first truly Canadian diversified marijuana company with four major divisions including insurance, marijuana, hemp and vitamin nutritional supplements.”
The biggest challenge is finding the right underwriting for what is not only a new product, and newly legal product.
“Our past experience has always shown that when you are dealing with alternative treatments, that being biomedical hormones,” says Edward J. Kuhn, an agent with Wellness Medical Protection Group/Liability Insurance Solutions, “hCG medical weight loss, botox aesthetics and injectables, that new alternative treatments come into the marketplace, there is a large degree of initial consultation in terms of liability and compliance of regulation and risk management.
“This is really no different. The Wellness Medical Protection Group specializes in the unique liability and risk management features, in particularly, the medical cannabis business.”
Kuhn says that it will take two or three years for claims to potentially develop to realize where the underwriting should truly be.
“Look at laser hair removal. It was introduced and now today it is being sold on a wide scale,” Kuhn told Insurance Business. “The claims developed and now burn claims that have caused permanent scarring have settled between $50,000 - $75,000 typically.” (continued.)