These days, marijuana is constantly on the move in states with marijuana legal reform. As a result, marijuana theft in transit is not unusual (see here and here for example). Typically, licensees have to transport marijuana themselves or a licensed distributor does it on their behalf. Some of these companies may carry their own insurance for damage to or theft of marijuana in transit. With profits and costs on the line for a universe of marijuana products new to the shipping industry itself, though, can cannabis companies protect better themselves while their products are in transit? I’ve written before about insurance disputes and other insurance issues in the cannabis industry before (see here), but here’s a “how to” on insurance for marijuana theft in transit.
In most states, licensees are required to secure commercial general liability insurance (CGLI) at certain amounts and by certain types of carriers in order to comply with state licensing laws. CGLI policies may not end up covering any damages for a loss or theft of marijuana products in transit. For that reason, in addition to securing the required CGLI, when compiling a comprehensive coverage program, cannabis companies should consider securing their own cargo-in-transit coverage that