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O P I N I O N
Considering a design project in the fledgling cannabis industry? Make sure your professional liability coverage won’t go up in smoke. New market, new concerns
D uring a recent ground-breaking ceremony for a $13 million school expansion in a small Colorado town, several public officials spoke, as did the general contractor and the prime architect. The architect pointed out the substantial involvement of several design team subs – structural, mechanical, landscape architecture, and several other specialty designers. Interestingly, it was noted that of the $13 million in funding, nearly $9 million is being raised from taxes the state will collect from the cannabis industry.
Rob Hughes
Should members of the design team be concerned that the project and their work are essentially being paid for by an industry deemed illegal under federal law? Does that fact impact the insurability of their work? Perhaps, at least in connection with this project, these are questions fairly easily answered: the funds are not directly from the cannabis industry, but have been passed through the state, which seems to bring a level of credibility to the process. However, if the setting and the facts are changed slightly, might there be more cause for concern? For example, would an architect sign on – and would a host of design subs sign on – to design the underground drug lab that was the scene of the television series in Breaking Bad ? No, of course
not. What about the “grey” areas in between these two examples – the real-life situations that many architects and engineers might readily accept as a new client and revenue stream, such as designing cultivation facilities or dispensaries approved by the state to grow and dispense state-licensed cannabis? Aside from any moral considerations – and strictly from a business perspective – might this be considered a “good risk” in comparison to other areas of your practice? Furthermore, are there any unique insurance-related issues to consider before jumping into this line of work?
See ROB HUGHES, page 12
THE ZWEIG LETTER August 19, 2019, ISSUE 1309
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