When it comes to cannabis insurance long-term insurers, Liberty & Outsurance, encourage advisers and clients to inform their insurer of any medical or lifestyle events that would impact their policy applications. Especially so if it’s substance-based, like weed. As it may result in your claim being denied if you did not disclose this information.
It will also ensure that clients receive their pay-outs when they need it most. Not telling the truth about their health on an application form, places the payment of a claim in jeopardy.
Things to tell your insurance company when it comes to cannabis and insurance:
- Amount consumed
- The purpose
According to Liberty, the benefits of full disclosure when it comes to consumption include:
- reassuring clients that their claims will be paid in accordance with the terms and conditions of the policy;
- ensuring a fair and more affordable premium is charged;
- leading to faster underwriting and fewer medical requirements to speed up the application process;
- resulting in fewer requirements needed at the claims stage;
- and leading to fewer legal and client disputes, especially if you are a consumer of cannabis.
3 important questions to clarify in cannabis and insurance cover:
- Will you repudiate a claim if I use cannabis but don’t declare it on my application form?
– Insurers have a responsibility to ensure that all valid claims are paid, but applicants have an equal responsibility to answer all questions truthfully.
- If I don’t smoke cannabis but I drink and eat it, will I pay smoker rates?
– The short answer is yes, the policyholder will pay general smoker rates as well as rates linked to the risk of the hallucinogenic properties of the substance.
- If a claim is as a result of being “stoned”, will it be illegal, and the claim declined?
– If an illegal act is committed, Liberty reserves its rights to decline the claim.
At the end of the day, honesty is the best policy. Cannabis still lives with a stigma, and it will take time for this to fade. Rather be open and honest about your consumption. Covering it up has the potential to cause problems with your insurers.