As the cannabis industry in the US continues to expand and professionalize, marijuana business insurance claim disputes are increasingly common.

In many states where cannabis is legal, canna-businesses are obliged to have extensive insurance policies in place in order to be considered for a marijuana license. Even if this isn’t the case, insuring against the multitude of risks faced by marijuana businesses, such as crop failure, fire, or consumer injuries, is nonetheless a good idea.

The trouble is, many insurance providers go the extra yard to avoid paying out claims filed by cannabis companies, often erroneously citing the plant’s federally illegal status as a reason not to do so. A recent case in Oregon highlights the lengths insurers will go to in order to avoid paying for losses.

While such procedural tricks are nothing new among insurers, marijuana businesses are often easy targets due to the sometimes confusing and contradictory laws and regulations in place governing cannabis in the US.

This is why insurance coverage attorneys are becoming increasingly indispensable to canna-businesses.

If a marijuana business suffers a loss and the owner is unsure whether the insurer will cover it, an insurance coverage attorney can review the policy in place and advise on the most effective strategy to get paid.

The insurance coverage attorney can then also represent their cannabis client in making an insurance claim and in formal litigation should a dispute arise.

Insurers are extremely savvy when it comes to avoiding payouts. Having someone on your side who knows how insurers operate can help ensure your canna-business is covered for losses suffered, and also avoid costly legal fees if the dispute can be settled before going to court.

Some states, such as Washington, have passed legislation to help cannabis companies in insurance disputes by covering attorney and court fees if the insurance claim is successful. Most, however, lag behind but it is nonetheless the case that insurers must promptly investigate canna-business claims, settle if it falls under the policy’s coverage, and act in good faith throughout the process.

A coverage insurance attorney with cannabis-specific industry experience can put pressure on insurers to fulfil these obligations, leaving you to focus on what you need to do to help your business recover from a loss.