EPIC launches 'first of its kind' cannabis insurance program

Greyling Insurance Brokerage & Risk Consulting (Greyling), a division of EPIC Insurance Brokers & Consultants (EPIC), has launched the first nationwide site pollution liability insurance program for the emerging cannabis industry.

Available in US states where cannabis is legal for recreational and medical use, the new EPIC program is designed to provide coverage for a material gap in commercial general liability and umbrella/excess liability policies for the cannabis industry, as these policies exclude losses resulting from pollution/pollutants on, at, under, or emanating from an insured location.

The EPIC/Greyling 'cannabis site pollution liability' (CSPL) insurance program protects growers, processors and retail dispensaries from claims alleging third party bodily injury and property damage liability claims as well as corrective action costs (investigation/cleanup costs) at or from an insured site. Minimum premiums for annual policies start at $4,000.

Cannabis growers are exposed to pollution liability claims resulting from fertilizers and other chemicals used in the growing process (indoors or outdoors). Cannabis processors commonly use chemicals like ethanol to produce oils and concentrates and to extract CBD from the product and face exposure from these operations, as well.

Retail dispensaries face pollution exposure from building heating/cooling systems, building maintenance and other operations, and are increasingly required to provide evidence of pollution liability coverage to landlords. The EPIC/Greyling CSPL program is designed to provide valuable protection to all of these operations.