Cannabis Legislation & Insurance
If you’re not already aware, Canada is planning for the legalization of marijuana on October 17, 2018. The Trudeau government’s stated goal is to legalize, strictly regulate and restrict access to cannabis, keep it out of the hands of Canadian youth, and prevent the expansion of organized crime and the black market.
And while much of the attention has been on where you will be able to buy it and from whom, there are other conversations to be had. One important question to consider is how will insurance providers view legal cannabis cultivation at home, or even driving under the influence of it. If you are a user or interested in growing the allowable four plants for personal use, does that small cannabis garden really come with a host of property risks? How does the use of cannabis influence your ability to drive? And will your use affect your health insurance or even travel insurance rates?
In a nutshell, the legalized substance will usher in major changes for the insurance industry – impacting everything from auto to health and travel. We recommend consulting with your Merit Insurance Broker to be sure of where you stand and to review your coverage.
Cannabis & Home Insurance
Under the proposed framework, cannabis consumption will only be allowed at a person’s residence and is likely to carry the same insurance risk that tobacco smoking does. Rental apartments and condo corporations are still trying to figure out how to regulate cannabis consumption in their buildings.
But, there may be a risk should you supply your house guests with legal, home-grown cannabis from your garden just like you would provide them with alcoholic drinks or snacks at a barbeque. You may even provide marijuana edibles that you’ve whipped up yourself. Should a guest become ill or suffer an incident, the liability would be on you as a host, in the same way, that injuries due to alcohol distribution falls back onto the homeowner or business.
Auto Insurance
Will you be able to drive after having used marijuana? Yes and no. Drugged drivers may have slower reaction times and can swerve or tailgate more often which makes them a much higher risk for accidents. However, G-licensed drivers with a minimal amount of THC in their system will be permitted. In the United States, the most commonly accepted number is 5 nanograms. It is unclear if that will be the amount permitted in Canada.
In Ontario, if you are a young (under 21) or inexperienced driver, you are NOT allowed to drive with marijuana in your system. Also, there are rules proposed for anyone driving for a business that prohibits marijuana in your system. As a general rule, always err on the side of caution. If you’re not sure, don’t drive! Consider alcohol use. You don’t truly know what your blood-alcohol content might be, but if you’ve been drinking – you don’t drive. That is the same advice you should follow for marijuana usage.
Recreational Marijuana & Health Insurance
Much of the discussion around health insurance has centered on whether or not employee benefits should include medical marijuana. What is apparent in the legislative framework for recreational marijuana is that the federal government really wants to continue with the medical cannabis route as a distinct route vs recreational marijuana at least for the next 5 years, after which the government will decide if it’s necessary to continue the distinction.
Travel Insurance
Travel insurance is different than the other kinds of insurance, in that it’s usually purchased exclusively for emergencies, including trip cancellation and medical attention. Because of that, medical marijuana doesn’t fit neatly into the medical emergency structure at all. But legal cannabis users should be aware of the jurisdiction of their destination – because the substance may not be legal there.
Not sure how the Ontario Cannabis Legalization will affect you or your business? Contact your Merit Insurance Broker today for a personalized discussion and action plan.
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