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Cannabis businesses face unique risks and challenges, and insurance slowly gaining its footing on how to properly insure this budding industry.

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Excluding marijuana from coverage. Policyholders engaging in what is considered a ‘dishonest of criminal act’ may find that it bars coverage for a loss or damage resulting from that activity. (Photo: Shutterstock)

Even though using or growing marijuana may be legal in a state, an insurer may not be responsible for resulting damages under the insured’s insurance policy.

Recently, the U.S. Court of Appeals for the Sixth Circuit ruled that substantial damage caused by commercial tenants who got caught growing marijuana in their rental units was not covered by the landlord’s insurance policy because of its “dishonest or criminal acts” exclusion.

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Steven A. Meyerowitz

Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected]

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