New Security Requirements for Colorado Outdoor Grows
Crop Insurance Availability Likely to be Unaffected
The Colorado Marijuana Enforcement division recently issued Bulletin 18-02 security requirements for outdoor cultivation facilities. The rule becomes effective on January 1, 2019 requiring these licensees to have specific fencing and lightning around their outdoor locations.
Will this additional security cause any insurance carriers to consider insuring outdoor crops?
Historically, the cannabis insurance companies have been reluctant offer crop insurance outside of an enclosed building. Clearly, these measures will reduce the risk of theft, but will not address other issues such as damage from weather, pest infestation, and disease that could expose the carriers to unforeseen risks.
We don’t anticipate any changes with our insurance carriers offering outdoor crop insurance as a result of these changes.
Colorado Outdoor Cultivation Security Requirements
1. The entire Limited Access Area shall be surrounded by a fence that measures at least eight feet from the ground, constructed of at least six gauge or higher metal chain link fence or a similarly secure material but may not be wood. All support posts shall be steel and securely anchored;
2. All entry gates shall measure at least eight feet from the ground and shall be constructed of six gauge or higher metal chain link fence or a similarly secure material but may not be wood;
3. The fence shall obscure the Limited Access Area so that it is not easily viewed from outside the fence; and
4. The perimeter of the fence shall be surrounded with lights illuminating all sides of the fence for at least 20 feet from the fence. Such lights may be, but are not required to be, motion sensing.