Canadian Underwriter

High Profit in a High Risk Sector, Many Operators go Un-Insured in the Medical Marijuana Industry

April 25, 2016   by CHES Special Risk Inc.

Ottawa, Ontario – CHES Special Risk Inc. today announce their CGL, E&O, Med Mal and Property Program for the Medical Marijuana Industry.

At a recent Hempfest in the US, a local Police Department was an unlikely benefactor handing out bags of potato chips to pot enthusiasts, Attached to the bags were public safety notices detailing the dos and don’ts of marijuana use. Not long ago, the only message would have been don’t use marijuana, but the times—and laws—are changing not just in the US but also in Canada.

The Canadian Marijuana Medical Access Program, in supplying treatments to patients in need, allows for medical marijuana producers and dispensaries to supply treatments, creating a niche industry–albeit a high risk one.

The medical marijuana industry has the same risks as any other industry; fire, flood, vandalism and theft, but it is the nature of the medical marijuana operations that changes their risk profile, in Underwriters eyes, enough to make the specialist at CHES Special Risk, offering the specialist lines necessary to properly cover the risks at hand.

Many businesses are a major target for robbery not only because of the large amounts of cash they hold on their premises, (this is usually as a result of the difficulties experienced in obtaining loans and setting up accounts with major banks), but also the attraction to thieves to the product itself.

The infrastructure required to cultivate the crop includes the installation of high-powered hydroponic lights that require an industrial level of electrical setup that can increase the risk of fire or shorts if not properly installed. The sensitivity of the hydroponic systems can mean the loss of a crop, which can have a devastating effect on cash flow.

Policies provided by CHES Special Risk Inc. provide the certainty that in the event of any of these eventualities, a robust policy can keep the business afloat. It is a common mistake made by Clients that coverage for medical marijuana businesses is expensive and hard to find. On the contrary, coverage is easily attained for businesses such as dispensaries, nurseries, bakeries and even building and leasing facilities. Policies are also usually reasonably priced, as a result of the specialized knowledge of the risks by the Underwriters at CHES Special Risk Inc.

A comprehensive placement for a client in the medical marijuana industry should include general liability, as well as property coverage.

General liability is available with limits of up to $5 million per occurrence, as standard, with higher amounts available upon request, in addition property coverage for theft or damage of product, equipment including furniture fixtures.

The experienced Underwriters in the Commercial Risks Department at CHES Special Risk is also able to offer a comprehensive approach to insuring this evolving Industry.

For more Information on the Product and Services offered by CHES Special Risk please contact the President:

Douglas D. Everett
CHES Special Risk Inc.
Tel: 613 745 6100

ABOUT CHES Special Risk Inc.

CHES Special Risk Inc. was established as a Managing General Agent and Wholesale broker in 2004, in response to Broker demand to a hardening market place, commencing with a particular speciality in the Entertainment and Hospitality business, later becoming a fully accredited Lloyd’s coverholder in 2009. CHES Special Risk are a fully Independent MGA delivering “A” Rated capacity both in the Hard to Place, and Standard lines classes and support their Retail Brokers in Growing and developing their businesses.

More information regarding CHES Special Risk can be found at:

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