Los Angeles cannabis operators face ‘exponential losses’ from the fires as existing issues compound the hurt.
Southern California marijuana businesses facing direct and residual effects of the latest round of wildfires will yet again have to deal with the challenges that come with limited insurance coverage, smoke damage and evacuations that will likely compound the sector’s existing financial pressures.
According to local outlets, the Pacific Palisades fire, along with the Eaton, Hurst and Woodley fires, has burned more than 15,000 acres, driven by hurricane-force winds, and triggered widespread evacuations, with mandatory orders stretching from the Pacific Coast Highway to Topanga Canyon Boulevard toward Interstate 405.
Many delivery services have suspended operations to keep drivers off the roads, while some retailers continued to operate without clear emergency protocols.
Cannabis companies could face “exponential losses” that other businesses don’t during disasters, United Cannabis Business Association President Jerred Kiloh told Green Market Report on Wednesday, in large part because of restricted insurance options and prohibitively expensive premiums.
“Fire insurance is not usually on a lot of commercial insurance plans” Kiloh said. “And when you pay this much insurance just as cannabis, you got to pick and choose what is high risk and what is not.”
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