Marijuana is illegal at the federal level, and insurance policies do not cover illegal activities. This article will discuss how some states have amended personal and commercial policies to overcome these issues. It cannot enumerate all the perils faced by insureds in the cannabis industry, but it will help underwriters and agents understand their insureds’ risks to provide better coverage. The article will also help claims adjusters communicate with underwriters to properly protect insureds from uncovered losses—and to protect insurers from legal issues.
Insights Article: Out of the Blue and Into the Green: Mitigating Stormwater Risk by Reducing Contamination of Receiving Waters
Stormwater runoff may be a source of both liability and opportunity. It can pick up various pollutants as it flows into nearby bodies of water, harming the environment and possibly requiring remediation by the relevant entity, but it also represents a valuable source of fresh water. In addition to transferring their risks through insurance, businesses and governments are using both traditional and so-called green infrastructure to control runoff and manage stormwater as close to the source as possible.
This article discusses ethical issues related to the relationship among an insurer, its insured, and appointed counsel—the tripartite relationship. An overview of issues related to this complex relationship is presented, along with limitations on an insurer’s right to defend its insured; approaches taken by various states, including regarding an insurer’s requirement to appoint independent counsel; and ethical considerations for defense counsel and claims handlers.