A Connecticut-based cannabis company is fighting with a Berkshire Hathaway insurer following a fire that damaged one of its grow rooms.
In 2020, one of Theraplant’s lighting fixtures exploded and sparked a fire in its flowering room. It resulted in damage to walls, equipment and nearly 1,000 cannabis plants.
The fire damage forced Theraplant to shut down the flowering room for 68 days and subsequently file a $1.3 million business loss claim.
But National Fire and Marine Insurance is disputing the claim, stating that the business loss was due to the damage to cannabis plants, which it doesn’t cover.
According to Insurance Journal, Theraplant is arguing that the business loss actually stems from the lengthy shut down of its grow room.
National Fire accused Theraplant of trying to “circumvent” the exclusion of cannabis crops in its policy.
While many states have legalized cannabis, it remains federally prohibited, making it difficult for cannabis companies to find inclusive and affordable coverage.
