Cannabis Law

Our attorneys offer a full suite of legal services to assist our clients in navigating the complex and evolving landscape of the cannabis industry. Specifically, our firm’s understanding of the unique challenges of the industry allows us to defend lawsuits brought against cannabis industry defendants as well as evaluate coverage and defend lawsuits on behalf of industry insurers, agents and MGAs. 

Insurance Coverage

We are familiar with the underwriting goals of industry insurers and MGAs, the policies drafted to reflect those goals and the unique risks inherent in the developing industry. We are experienced in analyzing coverage under cannabis policies as well as defending both breach of contract and bad faith lawsuits filed by insureds under cannabis policies.  

We analyze coverage and defend claims under Commercial Property, including associated business interruption and cannabis CGL policies as well as cannabis related Management Liability/Professional Liability, Cyber and other claims made policies. The coverages analyzed include: 

• Property & Inland Marine: Fire, theft, water damage, and transport losses
• Crop/Equipment: Claims involving mechanical failures or crop value loss
• Cannabis Stock & Crime: Theft, employee dishonesty, and inventory loss
• Duty to defend/coverage analysis under CGL or professional liability/claims made policies

Casualty

We deliver targeted, insurance-focused representation across a wide range of casualty claims, relevant to cannabis operations. We defend insureds for every general liability exposure, including:

• CGL: Dispensary slip-and-falls, solvent explosions, and the myriad of accidental injuries associated with agricultural and commercial premises risks
• Product Liability: Contamination, mislabeling, or accidental ingestion
• Auto Liability: Accidents involving cannabis product delivery or transport
• “Gram-Shop”: Liability for providing cannabis to intoxicated patrons
• Retail Accessory Risks: Injuries from broken glassware or accessories
• Landlord Liability: Issues arising from leasing to cannabis businesses
• Delivery Services: Claims tied to third-party logistics or on-demand delivery models

Management Liability/Employment

The cannabis industry is particularly susceptible to management liability and employment-related lawsuits due to its evolving legal and operational landscape. Common areas of litigation within these areas of law include:  

• Claims against company leaders: Stemming from their managerial choices 
• Wage and hour disputes: Misclassification of employees (exempt vs. non-exempt), failure to pay overtime, inaccurate timekeeping, and denial of breaks are common issues leading to lawsuits.
• Discrimination and harassment: Employees bringing claims under Title VII and other anti-discrimination laws, alleging harassment and discrimination based on sex, race, and other protected characteristics. 
• Wrongful termination: Employees may claim wrongful termination based on various factors, including protesting discriminatory practices or exercising their rights related to cannabis use where protected by state law.
• Retaliation: Employees who report workplace violations or engage in protected activities are also filing retaliation claims.

Professional Liability

Defending professional liability claims in the cannabis industry involves a combination of a history and experience defending a myriad of professional liability claims irrespective of the industry as well as an understanding of the unique risks for professionals servicing the cannabis industry. Our professional liability attorneys bring decades of experience defending professionals across many industries and are able to bring that experience to assist cannabis professionals including:

• growers and cultivators
• testing labs
• consultants
• accountants
• architects
• directors and officers 
• lawyers
• MGAs/ independent adjusters
• agents
• software providers

Cyber / Data Breach

Cannabis operators must comply with rigorous cybersecurity standards to safeguard sensitive data and uphold both state and federal regulatory and privacy mandates. Because the cannabis supply chain relies heavily on digital tracking systems, cannabis-related businesses must deploy specialized software tools that secure inventory management and ensure accurate, compliant reporting, such as track and trace software that creates additional cyber vulnerabilities. Our Cyber team is available to quickly mobilize to mitigate the damage due to ransomware attacks and data-breaches.

Workers’ Compensation

Defending workers’ compensation claims in the cannabis industry requires navigating an evolving legal landscape. Our team focuses exclusively on representing insurers and employers in workplace injury and occupational hazard claims, while also offering proactive risk management strategies to help reduce exposure.

Cannabis Industry-Specific Risks and Exposures

• Cultivation: Pesticide exposure, ergonomic strain; machinery accidents; electrical hazards
• Manufacturing: Chemical exposure from extraction processes; industrial accidents involving heavy machinery
• Retail and Distribution: Slip-and-falls; repetitive motion injuries; ergonomic strain; driver injuries

As the cannabis industry grows and regulations shift, our focused approach helps clients confidently manage workers’ compensation claims and minimize liability in this high-risk sector.

Health Care

While many states have legalized medical use of cannabis, it remains illegal under federal law. This dichotomy creates significant legal challenges for health care providers. We leverage our experience in helping clients navigate health care regulations such as HIPAA laws and patient privacy protections and apply it to the uniquely complex environment surrounding the cannabis industry. We defend clients against civil claims, including medical malpractice, and can assist health care providers – including physicians, dispensaries and clinics – to understand the evolving standards of care for cannabis as a therapeutic option, which can differ significantly from conventional treatments. This can include appropriate patient evaluations, dosage recommendations and documentation requirements within the framework of state medical cannabis programs. We are also well-equipped to address challenges related to informed consent.

Our Cannabis Law Practice Group serves clients from our 19 offices located throughout Pennsylvania, New Jersey, New York, Delaware, Florida, Ohio and Connecticut, and in neighboring jurisdictions in Maryland, West Virginia and Kentucky.