Cannabis Primer, Part 1

Marc Lefebvre discusses how legalized cannabis will impact personal lines policyholders. (Runtime: 1 min, 50 sec)

Size: 2.7 MB,   Time: 1 min, 50 sec   Text transcript  Download

broker on the go podcast

Marc Lefebvre of the Insurance Bureau of Canada discusses how the legalization of recreational cannabis will impact brokers’ personal lines clients.

Check out Cannabis Primer Part 2.

Related Article: Questions abound about testing for cannabis impairment

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Text Transcript

Marc Lefebvre, underwriting coordinator, legal services, at Insurance Bureau of Canada.

I think with the upcoming legislation to legalize cannabis, brokers are going to want to have a conversation with their clients and make sure their clients understand that driving under the influence of cannabis carries the same penalties and risks as it would for driving under the influence of alcohol.

I think brokers who have any clients with newly licensed drivers—your G1 or G2 drivers in Ontario—you want to make sure that they’re aware that these drivers are subject to zero tolerance for alcohol, and now for cannabis. And, of course, in Ontario, we will have zero tolerance for commercial drivers.

I’ll expand onto the property side that certainly brokers will want to have a conversation with their homeowners clients. The industry is looking to adopt a new special limit of insurance. Just as there is for jewelry and sporting equipment on a homeowner’s policy, there will be a new special limit of insurance for cannabis and cannabis plants.

The limit—whatever that amount would be—would be set by the individual insurers. But that is something that, because it is a new limitation in the policy, brokers will want to point that out to their clients to ensure that that limit is adequate for them.

In a situation like that, somebody who is, let’s say, a medical marijuana user who may be growing more than the four plants that Canadians will be allowed to grow at home, expresses that and makes sure their broker is aware of it so that it doesn’t impact their coverage after a loss.

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