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Subscribe to the Gaunty Rundown! In spite of what many think, and what some politicians would have you believe, the legalization of cannabis in itself was not to discourage drug use by making it more accessible to Canadians. Neither … Read the rest. A lot of fuss has been made about the forthcoming legalization of recreational cannabis by the government of Canada. The University of Calgary held a forum on Feb. Marijuana legalization is just around the corner. Here are … Read the rest. After receiving an anonymous tip — and observing smokey haze emanating from … Read the rest. According to guidelines endorsed by the Canadian government, you should not smoke weed every day. School can be stressful. Luckily, there are plenty of spots around campus that provide ample opportunity to light one up. Has Canada become the new Amsterdam? By Aaren Abigail, November 7 — In spite of what many think, and what some politicians would have you believe, the legalization of cannabis in itself was not to discourage drug use by making it more accessible to Canadians. Calgary should rethink stifling weed bylaws May 4, — A lot of fuss has been made about the forthcoming legalization of recreational cannabis by the government of Canada. Canadian government endorses marijuana use guidelines By Jennifer Khil, July 26 — According to guidelines endorsed by the Canadian government, you should not smoke weed every day. What should students expect from marijuana legalization?
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With the enactment of the Cannabis Act and its regulations, Canadians are now able to grow cannabis on personal property, for medical, recreational or commercial reasons. Before that, in or , Mr. Wawanesa had been insuring the property for many years and the Schellenbergs renewed their policy each year through Hub International insurance brokers. The Schellenbergs acknowledge they did not notify Hub or Wawanesa of the grow operation or the upgrade to the electrical system before the fire. After the fire, Wawanesa denied coverage and voided the policy based on a failure to disclose a material change to the risk. Wawanesa argued that the plaintiff failed to notify them when they performed upgrades to their outbuilding to accommodate a cannabis grow-op and higher electricity usage. Since the insurance policy extended only to the previous state of the outbuilding, and the addition of the cannabis grow-op substantially altered the risk contemplated, coverage was denied. However, the plaintiff alleged that Wawanesa wrongfully voided coverage, that they breached an implied contract to ensure adequate coverage was present, and that their broker was negligent for failing to ask questions relating to the changes in risk to the building. The Court also held that there was no breach of contract. There was insufficient evidence that there was an alleged agreement to provide adequate coverage despite receiving incomplete information. In other words, insurers are not required to determine whether a cannabis grow-op is present after property changes are made, particularly when little information suggesting its presence is provided. As such, property insurers must be informed of these changes. Given the scale of the operation, at more than cannabis plants and accompanying space and electricity requirements, the plaintiff ought to have considered that the changes would affect their insurance premiums. This case acts as a reminder for future and current cannabis producers to inform their insurers of any changes to the use of their property. A sizeable operation to grow cannabis requiring upgrades to electricity systems may be deemed a material change in risk, which may void an insurance policy if an insurer is not notified. For more information about this case, please contact Michael Nadeau from our Cannabis Practice Group , who successfully represented Hub International. Skip to content. Cannabis Production: A New Type of Material Risk for Property Insurance Coverage With the enactment of the Cannabis Act and its regulations, Canadians are now able to grow cannabis on personal property, for medical, recreational or commercial reasons. The plaintiff sued their insurer, Wawanesa and the broker Hub International. Issues Wawanesa argued that the plaintiff failed to notify them when they performed upgrades to their outbuilding to accommodate a cannabis grow-op and higher electricity usage. Implications This case acts as a reminder for future and current cannabis producers to inform their insurers of any changes to the use of their property. Subscribe to get the latest updates. Insurance Practice Areas. Insurance Cannabis. Anil Aggarwal Partner View Bio. Todd Davies Partner View Bio. Scott Harcus Partner View Bio. Lisa Mackie Partner View Bio. Michael Nadeau Partner View Bio. Serving the legal industry since Facebook Twitter LinkedIn.
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Cannabis Production: A New Type of Material Risk for Property Insurance Coverage
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