Today is the first day of the federal governments Cannabis Act, which allows the legal purchase and consumption of marijuana for recreational purpose. Insurers are today revealing their models for dealing with the changes cannabis brings to home and auto. Crawford & Company has introduced a new coverage solution for the nascent pot market.
The claims and risk management company says it foresees “a level of risk” from the Cannabis Act. Indeed, the firm says employers and insurance companies must manage the risk.
In a press release, the company said the product is designed to specifically deal with legal marijuana risks. Among those risks are damage to residential and commercial properties. As well as home insurance risks, auto insurance risks are also dealt with by the solution.
“The legalization of cannabis in Canada is a recent development that we will have to address from within the insurance community and outside,” said Crawford & Company (Canada) president and CEO Pat Van Bakel.
Some of the benefits of the solution include:
- Property damage or theft around the growth of plants at residential properties
- The management and transportation of cannabis grow-ops (from a commercial standpoint)
- Automobile incidents as a result of cannabis usage
- Overall employee management addressing medical and recreational use of cannabis
Insurers Prepared for Legalization
Earlier this week, we reported on the preparedness of insurance companies leading to marijuana legalization. The industry is more prepared than authorities and regulators:
“There will be a buzz. Lots of people will be interested in learning more about cannabis, especially those who have been waiting for legalization before trying cannabis products, whether that’s for recreational or health reasons,” said Barinder Rasode, president and CEO of NICHE Canada.