Cannabis Legislation & Your Insurance

cannabis plant close up

As of October 17, 2018 cannabis is now legal in Canada. So what does this mean for your insurance?

Personal Property Insurance

Traditionally property insurance policies denied coverage for dwellings where there were cannabis grow operations including the dwellings of people growing it legally for their own personal medical reasons.

Insurers have been busy updating their policy wordings to be more specific in what they will and will not cover when it comes to a cannabis related loss. The available coverages and restrictions vary from company to company so it is advisable to confirm with your broker what your insurer offers.

The most common exclusion amongst our insurance partners are:

  • Insurance coverage will continue to be denied to dwellings where an illegal grow operation is being conducted
  • Damage to the cannabis plants themselves will not be covered
  • Special limits will be in place for the amount payable for a cannabis related loss

Automobile Insurance

Drug Impaired driving is a criminal offence under the Canadian Criminal Code which has recently been revised to allow roadside testing for drug concentrations.

A drug impaired driving conviction and/or related license suspension will have serious implications on your car insurance premium and on the number of insurance companies willing to offer you a quote.

Following a conviction for driving while drug impaired you will lose your conviction free discount (approx. 15%) and the insurer will then add a conviction surcharge due to the nature of the conviction (often 50%). Any license drug impaired license suspension will result in your star rating drop to a 0. These changes can easily triple your current rates.

For further information contact us.