Cannabis

As cannabinoid and hemp products continue to enter the market, a vast array of perils awaits insurers. Many entities in the cannabis supply chain can be affected, from dispensaries, processors, cultivators, transporters, co-packers, and laboratories. Claims increase in complexity when extraction processes are involved in creating derivative products.

MDD has experience at all levels of the cannabis supply chain. In addition, we have worked on cannabis claims in markets around the globe. Our real-world experience includes working at a large-scale cannabis producer. MDD is frequently called upon to assist our clients regarding insurance and litigation matters related to hemp and marijuana businesses and products.

As a trusted advisor, MDD can:

• Inquire into the timeline of events and growing cycle notations
• Identify the grow cycle phase (germination, seedling, flowering, cultivation, drying, and trimming) and the subsequent cost inputs for the impact products
• Evaluate planned and actual yield by strain
• Perform analysis of available product substitutes and potential mitigation
• Perform physical inventory counts and identify available inventory on hand
• Search accounting records for potential incremental costs such as added labor, re-packaging expenses, and further quality control steps
• Validate product sales values at retail or wholesale price
• Confirm the finished product form (flower, shake, edible, oil)
• Examine non-loss-related events and conditions that may have impacted actual sales during the alleged loss period
• Apply our knowledge and understanding of the regulatory environment that often plays a key role in the quantification
• Calculate damages solely attributable to the incident
• Provide expert reports and witness testimony if necessary

Finally, we provide clients with regular updates and accurate, objective, comprehensive, and easy-to-understand reports.