With the Cannabis industry expanding at an exponential rate, there is now more emphasis on making ensuring the product is kept secure and safe. In some cases, this neglect has led to millions in damages.
In one case from Detroit, an insurance company is suing an industrial lighting company for damages to their client. In Trisura Specialty Insurance Co. v. Gavita North America et al., the insurance company is suing the lighting company for faulty electrical work. They contend that faulty electrical work was the cause of3.5 million in damages to their insured’s cultivation operation. Trisura is suing for negligence and product liability, by contending that “Gavita had failed to properly label its lighting fixtures with warnings about the compatibility with different types of lamps. The insurer also accused Gavita of designing the fixtures so that they could work for extended periods of time with different lamps, even if those lamps were ultimately incompatible and could later pose a threat.[1]”
Trisura has contended that despite Gavita’s assurances that they fixed the issue, there are other lighting fixtures that they made that could cause similar fires. The suit intended to show that the sued company’s products weren’t up to the standard they need for a cannabis production farm.
The federal government’s unwillingness to decriminalize medical and recreational cannabis makes it difficult for cannabis growers to get proper coverage. However, there are numerous insurers willing to deal with complexities in insuring the cannabis industry.