Insurers face mounting risks from unregulated substances flooding the market
Over a decade after Washington state and Colorado became the first in the US to legalize recreational adult-use marijuana, the cannabis industry has evolved from a fringe market into a billion-dollar sector.
A growing array of psychoactive products, touching everything from pharmaceuticals to wellness and consumer goods, are now legally sold across mainstream retail channels. However, with this rapid expansion has come an equally swift rise in lawsuits and heightened liability concerns, with significant impacts for insurance.
One of the emerging risks in this sector is the influx of substances that are being sold alongside cannabis, such as hemp-derived cannabinoids, plant-based psychoactives, and psychedelics.
Lee Woodruff (pictured), vice president and cannabis practice leader a