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Covering marijuana businesses. Marijuana-touching entities need many of the same lines of insurance as other commercial enterprises, but they do have some unique risks that insurers should consider when providing coverage. (Photo: Shutterstock)

One of the issues we have been monitoring for a while now involves the gradual legalization of marijuana. As more states legalize it for medical and recreational use, the federal government still considers it a Schedule 1 drug, meaning it has no recognized medical use and has a higher potential for abuse or misuse.

For insurers, this conflict creates some risk in terms of providing coverage to marijuana-based entities because of the lack of federal guidelines. The patchwork of differing state regulations also makes it difficult for carriers operating in multiple jurisdictions because enforcement varies from state to state.

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Patricia L. Harman

Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]

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