Case Studies

CASE STUDY
Theft Losses, Crime and Fidelity Coverage

Theft of cash experienced by cannabis business is a common kind of cannabis-related insurance claim. The theft is normally comitted by a third party or an employee. 

Two employees of Medicine Man, a Colorado Dispensary, were charged with stealing from the store by using military discounts. According to police records the owner and other employees noticed an increase of purchases rung up as 15 percent military discounts. When they looked more closely at the records, they began to suspect that the two were ringing up regular purchases at discount prices and pocketing the difference. After an investigation, the Cortez Police estimated that $12,000 had been stolen. (The Journal, By Jim Mimiaga Journal staff writer, Sep 21, 2017.)

CASE STUDY
Product-Related Exposures; Products liability/Recall

The majority of cannabis product-related claims and lawsuits have been the result of contamination and label and testing failures. 

In the Denver Colorado case Kirk v. Nutritional Elements, et al. the sons of Richard Kirk filed suit against the manufacturer and dispensary of a cannabis-infused candy edible after Richard ate the 101 mg THC edible in one dose, suffered a psychotic break, and shot and killed his wife. The sons alleged that the defendants misrepresented the edible product and knew or should have known the product would cause harm to users or third parties because it omitted specific warnings of the risk of psychotic behavior that was not reasonably apparent to a cannabis edible consumer. It was alleged that specific warnings were necessary because the risk of “strong drug affects, including possible psychotic behavior” would not be readily apparent to a reasonable consumer of cannabis edibles. They specifically urge that a warning of this possibility should have accompanied the product when sold. An undisclosed settlement was reached with the plaintiffs.

CASE STUDY
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CASE STUDY
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