Cannabis. Marijuana. Pot. Not only is it known by a wide variety of names, but it's also subject to an equally wide variety of regulations, which vary significantly from one region to another. With legislation surrounding its production, distribution, sale and possession changing rapidly, insurers have the difficult task of assessing not only the physical and business-related risks of cannabis-associated underwriting but also the legal implications. Following, we examine the current legal environment — and associated insurance implications — in Canada, the U.S. and U.K., to see what the laws currently state, and how the insurance industry is responding accordingly.

Canada

The Cannabis Act, which came into force on October 17, 2018, is Canadian federal legislation which legalizes the recreational use of cannabis in every province in Canada. It put into place a new, strict framework for controlling the production, distribution, sale and possession of cannabis in Canada.

Each province and territory has its own rules for cannabis, including determining how cannabis is distributed and sold within its jurisdiction. The provinces make law with regard to legal minimum age, where stores are located and how stores are operated, where adults can buy it, where adults can use it, and how much adults can possess.