Why Cannabis Policies Fail At Claim Time
Unlike standard ISO commercial package policies, surplus lines cannabis policies contain rigorous condition warranties. A failure to strictly satisfy physical safeguards (e.g., dual-path alarm line security or 90-day CCTV) gives underwriters legal grounds for complete claim denial.
- Health Hazard / Respiratory Exclusions: Many standard CGL policies silently exclude claims arising from vaporizers or lung injuries unless bought back.
- Living Plant Sublimits: Real estate property forms exclude growing crops. Living plants must be specifically insured on a stage-of-growth value matrix.