On October 17^th, 2018 Canada became just the second country in the world to legalize the recreational use of cannabis. While the implications of this legalization will be wide-reaching and have yet to be fully realized, there are some important insurance implications that you should keep in mind.

Driving Safety

Impaired driving remains an illegal act, whether the impairment is caused by alcohol or drugs, and is the leading criminal cause of death and injury in Canada. With the legalization of cannabis, families are encouraged to discuss the dangers of drug-impaired driving with the same seriousness as drinking and driving has been approached in the past. New legislation allows Police to use approved drug screening devices, similar to their response when dealing with a suspected drunk driver. Remember that there is a zero-tolerance policy with respect to young and novice drivers.

For Auto Insurances purposes, a conviction for drug-impaired driving is comparable to a conviction for alcohol impaired driving. Both are considered Criminal Code offences and will result in significant premium surcharging or even declination of coverage. In no uncertain terms, driving while under the influence of any drugs or alcohol is unacceptable.

At Home

The new legislation allows Canadians to legally grow up to four plants per residence. Please note that this is a per residence limit and not a per person limit. If you are considering growing plants under the new legislation, please read the rules carefully to ensure you are in compliance. From a risk management perspective, growing can involve the use of specialized lighting or other equipment and licensed electricians should be consulted or used where necessary. As with any plant, growing inside your home can attract pests, which can cause a significant nuisance or even damage to the rest of your home. Cannabis plants in your home can also represent an allurement for ‘smash and grab’ style burglaries, meaning they should be stored out of sight and in a secured location. A monitored burglary and fire alarm system should be considered.

Each Insurer has their own approach to home-based growing, and we may be in touch with any specific underwriting questions or requirements your Insurer may have.

Host Liability

With the legalization of cannabis, hosts should approach service and consumption in the same manner as alcohol. As you may already know, whether you are hosting friends in your home or a work social event, you have potential liability for bodily injury or property damage to others, arising out of the negligent serving or distribution of alcohol. Hosts have been found responsible by the courts for the actions of their guests who consumed past the point of intoxication. If alcohol or cannabis will be consumed at your event, consider asking participants if they have a designated driver, ensure non-alcoholic beverages and food options are available, have cash on hand for cabs to prevent impaired driving, and keep a watch for over consumption or signs of intoxication. Call our office if you have any questions, or if you would like a quote for separate Host Liability Coverage for your event.

Travel

Despite some states having different rules, cannabis possession is still illegal under U.S. federal law – do not attempt to enter the United States with any cannabis. While there is some allowance while flying within Canada, cannabis is not permitted aboard international flights.

 

Insurance policies contain exclusions that apply when Insureds engage in illegal activity, so it is up to all of us to ensure we fully understand and adhere to the new laws of the land. To help, visit the following links:

• Canada’s Cannabis Act Website – canada.ca/cannabis
• Ontario’s Cannabis Website – https://www.ontario.ca/page/cannabis-legalization