Cannabis Exclusion Bars Liberty Mutual Coverage, Court Rules

A Liberty Mutual Insurance Co. unit is off the hook for defense costs in an underlying case over a butane leak and subsequent explosion at a cannabis product manufacturing facility.

A marijuana exclusion in the commercial general liability policy issued by Ohio Security Insurance Co. precluded the insurer’s duty to defend in the suit, the US District Court for the District of Oregon ruled March 6.

Ohio Security insured Primordial Mountain LLC under a commercial general liability policy. Primordial operated a cannabinoid extraction lab at an industrial warehouse in White City, Ore., that was owned by Mary Laurent Leach and ...