Rockall provides a one-stop approach to satisfy all of the liability insurance and attestation requirements for both medical and adult-use marihuana licensees operating in the State of Michigan.
How it works:
- Product liability – each license is scheduled
- Attestation endorsement in compliance with the Senate Bill 461 for medical marihuana license holders
- Attestation endorsement in compliance with R 420.10 for adult use license holders
- General liability endorsement for compliance with Public Act 55, Section 11a is included in the policy form
Senate Bill 461, amending Section 408 (MCL 333.27408) was approved by Governor Whitmer in December 2021, taking effect as of March 30th 2022. This bill requires medicinal marihuana licensees and applicants to provide the Cannabis Regulatory Agency (“CRA” and formerly knowns as the Marijuana Regulatory Agency) with “proof of financial responsibility for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused product in an amount not less than $100,000.00 for each license.“
In order to be compliant, medicinal marihuana licensees must obtain an insurance policy meeting the following requirements:
- The policy must be issued by a licensed insurance company or licensed captive insurance company.
- The policy does not include a condition, provision, stipulation, or limitation that relieves the insurer from liability for the payment of any claim for which the insured may be held liable under this act.
- The policy covers bodily injuries to a qualifying patient including injuries that are caused by the intentional conduct of the licensee or its employee or agent. However, it is not required to cover bodily injuries to qualifying patients caused by the licensee or its employee or agent when acting with the intent to harm.
Effective October 11, 2021, Public Act 55 of 2021 amended the Michigan Regulation and Taxation of Marihuana Act (MRTMA) to add Section 11a (MCL 333.27961a), which prohibits adult-use licensees from selling or transferring marihuana to a person who is visibly intoxicated at the time of sale or to a minor. This section also allows individuals who suffer damage or are personally injured by a minor or a visibly intoxicated person to take action against the licensee who sold or transferred the marihuana.
In order to be compliant, adult-use marihuana retailer and adult-use marijuana microbusiness licensees must also obtain a liability insurance policy meeting the following requirements:
- The policy must be issued by a licensed and admitted insurance company.
- The liability amount must be a minimum of $50,000 for actions brought against the licensee under section 11a of the MTRMA.
Existing Licensees (Licensed before 10/11/21). Adult-use marijuana retailers and adult-use marijuana microbusinesses must submit proof of the required liability insurance to the CRA at license renewal.
Department of Licensing and Regulatory Affairs – Cannabis Regulatory Agency R 420.10 of the Michigan Administrative Rules, took effect June 22, 2020. Specific to adult-use licenses, this rule states, in relevant part, that “before a marihuana license is issued or renewed, the licensee or renewal applicant shall file a proof of financial responsibility for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused products . . . for an amount not less than $100,000.”
* This is for informational purposes only, and is not intended as legal advice.
Learn more about our available coverages: Liability Coverages