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Insurers Still Grapple With Marijuana Coverage Questions


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Medical marijuana is now legal in 22 states and the District of Columbia. Two of the 20 states – Washington and Colorado — have legalized marijuana for recreational use. This nascent industry is booming. The National Cannabis Industry, comprising entrepreneurs, investors, growers and retailers, says the industry is worth $1.43 billion and will grow 10-fold over the next four years.

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With legal bud here to stay, insurers need to determine how cannabis will influence personal lines. While some already offer coverage for cannabis losses, others are taking a wait-and-see approach. Since the laws are not uniform across legalized states, it makes it confusing for policyholders and insurers alike.

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