AS PROTESTS around the country descended into rioting and civil unrest, many cannabis dispensaries were looted or damaged. Some stores report having tens of thousands of dollars worth of product stolen, windows broken and fixtures destroyed. If your shop suffered damage or theft during the mayhem, you will obviously be turning to your insurance to file a claim. If you have appropriate security systems in place, claims for damage and theft from rioting and looting are likely to be paid by your insurer. A number of coverages may also come into play depending on the damage and lost income a business suffers at the hands of rioters, vandals and looters if you have proper protective safeguards in place.
Property damage
Cannabis property policies typically cover damage to a business property caused by fire, theft, riot, civil commotion or vandalism. This would include coverage to the structure of the business, as well as any inventory, fixtures and other contents. The policy may cover damage and theft if rioters break into your cannabis business and steal product or other items and destroy or damage property like furnishings and office equipment. Please note: One component of a cannabis property insurance policy is that the insured must have certain security protocol in place, such as alarms and cameras.* * Please refer to the actual policies for policies for specific terms, coverage, conditions, limitations and exclusions that will govern in theevent of a loss. Please note that the information set forth in this article is NOT legal advice, rather our insurance perspective. We do not provide legal or claims advice and recommend that you seek advice from your legal counsel or a claims manager to identify and respond to any legal matters which may arise.
Commercial vehicle damage
Vehicles may be covered for damage or theft during riots or vandalism by your commercial auto policy if you bought comprehensive coverage. Comprehensive coverage will usually cover your vehicle if it is:
- Stolen,
- Damaged, or Destroyed (for example, burned).
Business interruption coverage
Business interruption is a coverage that can also cover loss of income due to to fire, theft and vandalism, and typically include closing for riot-related reasons. Coverage may also apply if a business suffers a loss of income because of curfews or if authorities bar access to a property. Coverage is typically triggered if there is direct physical damage to the premises. Claims should be reported immediately, however, many policies require a 72- hour waiting period before a policyholder can begin making a claim. That’s because the first three days of business shutdown, access constraints or limited hours of operation because of a civil authority action are often excluded from coverage. There may also be a limit to the claim period. Waiting periods are listed on the policy.
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If you’re looking for a team of specialists who can help your cannabis business navigate state laws and regulations like this, contact Cannabis Connect today for a free quote.
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