Is that Certificate of Insurance really going to provide coverage at that event?
The answer to this question depends on the type of insurance policy you have purchased and specific endorsements that may or may not be included.
Most commercial general liability policies are known as designated premises. This means coverage is for a specific location. If you’re at a cannabis event located, then coverage may be in jeopardy.
Below is an example for an event being promoted by CannaCon in Washington State requiring exhibitors to have Commercial General Liability insurance listing Smart Promotions CannaCon as a additional insured.
This request appears simple and straightforward causing most vendors to contact their insurance broker or agent to satisfy this request.
Example Insurance Requirement for Cannabis Event
Check your insurance policy for the Designated Premises Endorsement
If the endorsement exists you will likely want to discuss with your insurance broker because the general liability is limited to the address where the exhibitor conducts their normal business. If you’re an exhibitor conducting business at a different location, the chance exists coverage will not be offered for bodily injury, property damage, personal and advertising injury, and medical expense.
Furthermore, the cannabis event sponsor or host that originally requested being named as additional insured on the exhibitors policy may not be afforded coverage.
What seemed like a straightforward request by the event sponsor just became complicated due to the language in the insurance policy. Both parties will need to carefully consider the language of the insurance policy and additional insured to determine what a course of action.
In our opinion, the exhibitor will want to request from their insurance broker if the option to remove the endorsement and add event coverage is available. If that option doesn’t exist, a specific cannabis event insurance policy may be purchased in order to properly cover the event sponsor and exhibitor.
Example Policy Endorsement
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
LIMITATION OF COVERAGE TO DESIGNATED PREMISES OR PROJECT
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE
Premises: 123 Main St. Denver, Co 80202This insurance applies only to “bodily injury”, “property damage”, “personal and advertising injury” and medical expenses arising out of:
1. The ownership, maintenance or use of the premises shown in the Schedule and operations necessary or incidental to those premises; or
2. The project shown in the Schedule.