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.
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.