Like it or not, come January 1, 2020, cannabis will be legal for adults to consume and possess in Illinois. Despite the change in Illinois law, marijuana is still illegal at the federal level, putting the state and federal government at odds.
While many people are speculating on how the new law will play out, one area that hasn’t been closely examined is how cannabis legalization will affect insurance. Well, at PLR, insurance is our stock and trade! See below for some of our ideas on how marijuana legalization will impact different types of insurance
Much like with driving under the influence of alcohol, getting caught driving under the influence of marijuana does and will result in a hike of your car insurance rates. The illegality of cannabis at the federal level makes this one especially difficult, as different states have different definitions for what “under the influence of marijuana” is. In Illinois, drivers must have below 5 ng/ml of THC (the psychoactive chemical in marijuana) in their blood or less than 10 ng/ml of THC in their saliva.
Many people receive health insurance through their workplace. Even though Illinois will have legal marijuana in January 2020, the law allows employers to maintain drug free workplaces, meaning anyone who shows up to work stoned could be fired. In addition, according to this article by the National Law Review, cannabis can be detected in a person’s system long after its intoxicating effects have worn off. As a result an employee could be fired for failing a random drug test even if he or she wasn’t impaired at the time of the test. By extension, being fired because of a failed drug test would result in the loss of health insurance benefits for the employee.
Business Owners Insurance
There’s very little information on the internet regarding information for cannabis businesses. According to this article from the Insurance Journal, this is because many companies are wary about providing insurance to a business that supplies a product that is illegal under federal law. Despite this, the article goes on to say that some insurance businesses are providing cannabis companies “commercial general liability, with limits of $1 million per occurrence/$2 million aggregate; property liability and product liability, both with limits of $1 million per occurrence/$2 million aggregate.”
Insurance from PLR
However cannabis legalization affects the insurance industry, you can be assured that we at PLR will approach it as we do everything else: through careful assessment of our clients’ needs, and a conversation. We believe that everyone's insurance needs are not the same; we want to learn about you--your life, your home, your needs. We use that information and our expertise to match you with the policy that gives you the coverage and peace of mind you need, without busting your bank account.
If you are ready to start the conversation, you can get in touch with us here.