Get a quote


Join Our Distribution List Today!

Need help managing your business risks during COVID-19? – CLICK HERE FOR INFO YOU CAN USE
ALIGNED Insurance

Call Toll Free

Insurance For Cannabis Landlords in Canada

Insurance For Cannabis Landlords - ALIGNED Insurance Brokers
ALIGNED - CLICK HERE to get a FREE insurance quote now - Header - June 2021
Want insurance? Click HERE to get a FREE QUOTE!

Are you properly insured as a cannabis landlord in Canada?

A 2018 court ruling in Saskatchewan has landlords across Canada buzzing. Tenants who were attempting to produce cannabis resin caused an explosion and fire damage to the property they were renting. The landlords made a property insurance claim. When their claim was refused by the insurance company, the landlords took the insurer to court. Citing an exclusion on the front page of the landlord’s two-page renewal form, the judge ruled in favour of the insurance company.1

Here’s the exclusion: “We do not insure: 15. Dwellings, outbuildings or personal property contained in them, used in whole or in part for the cultivation, processing, manufacture, distribution or sale of marijuana or any product derived or containing marijuana or any other substance falling under the Controlled Drugs and Substance Act Narcotic Control Regulations.”2

Globe & Mail: Landlords beware: Insurance won’t cover damages caused by tenant drug operations

While the landlords in this situation weren’t aware of the cannabis production in their rental property, the risks of being a cannabis landlord – knowingly or unknowingly – are clear.

If you are a cannabis landlord, you need to know that your insurance requirements are unique in the marketplace. In fact, the process to secure insurance for cannabis landlords is different from standard insurance placement. Because insurers view cannabis landlord insurance as high risk only a limited number of insurance companies are comfortable underwriting your risks. ALIGNED insurance brokers understand cannabis risks and can help ensure you get properly insured as a cannabis landlord in Canada.

Insurance For Cannabis Landlords - ALIGNED Insurance Brokers

Need insurance for cannabis landlords? We can help you #getALIGNED. Just click to get a quote now!

High risks that cannabis landlords may face

There’s a relatively small insurance marketplace in Canada that welcomes cannabis risks. Only some insurance companies underwrite cannabis related risks, including those faced by cannabis landlords. Here are some of the high risks that concern insurers:

  • Potential for water damage due to the growing systems
  • Concerns over mould and fungus risk
  • Spoilage risk of the cannabis inventory
  • Higher probability of fire
  • High market/dollar value of the product and inventory
  • High business interruption exposure given the value of the product and growing time needed
  • High value and specialized nature of equipment, lights, ventilation systems etc.
  • Significant machinery breakdown exposure due equipment needed for growing and sensitivity of the products to temperature and humidity

Related Matters:  ALIGNED Insurance: Commercial Property Fire Insurance Overview

Get coverage that responds to the risks you face as a cannabis landlord

Across Canada, ALIGNED insurance brokers have cultivated a deep and thorough understanding of exactly what’s needed to cover cannabis industry related risks. Not only do we understand how to navigate the current coverage options available, we know where to find the best available insurance options for cannabis landlords in the Canadian marketplace.

And if your tenants grow cannabis on the property they are renting from you, additional information about their growing operations that you’ll need to provide includes:

Good to know. We’re here to grow with you.

Knowing that you are properly insured as a cannabis landlord is vitally important. ALIGNED insurance brokers have strong relationships with more than 65 of Canada’s top insurance companies and are able to provide choice and options to each and every one of our clients. We understand specific cannabis risks and exposures. We’re proud to help Canadian cannabis landlords get ALIGNED with the best available coverage options.

Need specifics about any of our commercial insurance products?
Call us toll-free now at 1-866-287-0448

Sources:  1,2 Globe & Mail:Landlords beware: Insurance won’t cover damages caused by tenant drug operations; 3 ALIGNED Insurance: Insurance for landlords with cannabis growing tenants

It’s time to get insurance value and choice aligned. Want Canadian business insurance that aligns with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448 or click to Get a Quote!

We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. Our industry peers consistently recognize us as one of Canada’s best insurance teams. 100% Canadian-owned, we are super proud to be one of the fastest-growing insurance brokerages in the country.

We deliver e-news you can use. Get practical business insurance insights in your inbox every month. 19,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to get connected.

365 | Get ALIGNED. Every day, Canadian business leaders read our insurance insights. Find us on LinkedIn, TwitterFacebookInstagram and YouTube.

Leave a Reply

Your email address will not be published. Required fields are marked *