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No Insurance for Marijuana Farms Destroyed in California Fires
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By: Teri Bernstein

 

 CBC News Insurance cancelled for marijuana co-op (7 months prior to fires)

 

Recent fires in Northern California have caused massive damage to marijuana farms. But because marijuana growing is illegal under federal law, no insurance company will insure these businesses. Just at the point when the potential market was to expand due to changes in California law--as well as it being harvest season--tragic fires have wiped away some farmers' crops and homes. Even plants housed in greenhouses that have survived fires may be contaminated by smoke. 

 

Source: "Devastated Northern California marijuana farms are ineligible for insurance," by Tonya Mosley, Marketplace: American Public Media, October 23, 2017. 

 

Discussion: 

  • What is your opinion about insurance for businesses whose legality is in question in overlapping districts? Since states provide corporate charters, should incorporated businesses following state laws be insurable?
  • Read about a solution proposed by California Insurance Commissioner Dave Jones. What are your thoughts?