The Scenario
A dispensary customer slipped and fell while exiting the premises, resulting in a broken arm. Incidents like these often lead to costly bodily injury claims, even when a business takes every precaution to maintain a safe environment. However, this case highlights how proactive risk management, specifically security measures like video surveillance, can make all the difference.
Key Details of the Incident
- Coverage Type: General Liability
- Claim Type: Bodily Injury
- Business Type: Dispensary
- Incident: A customer lost their footing upon exiting the dispensary and fell, breaking their arm.
- Investigation Findings: Video surveillance footage confirmed that the fall was not caused by any defect or hazard on the premises.
Outcome: No Payment Due
The clear surveillance footage showed that the dispensary was not negligent in maintaining safe conditions. The claimant ultimately did not pursue the claim, and we were able to close the case with no payment due.
Key Takeaways for Cannabis Industry Businesses
- The Importance of Preserving Surveillance Footage
Slip-and-fall claims can be costly, especially without solid evidence. Surveillance footage is critical in defending against fraudulent or exaggerated claims, but having cameras isn’t enough; businesses must retain the footage.In several instances, our claims team has seen cases where insureds failed to preserve video after an incident, leading to courts ruling against them for “spoliation of evidence.” Such rulings can imply intentional destruction, severely harming a legal defense.
To avoid this risk, businesses should have clear policies for retaining footage after incidents. Proper preservation can be the difference between a successful defense and an unnecessary payout.
- Risk Management Saves Money
Even if a claim is successfully defended, the costs of administrative processing, legal representation, and potential settlements may be especially significant. Preventative measures like video surveillance, proper signage, and routine safety checks can greatly lessen each of these risks. - General Liability Insurance Matters
Even with zero payouts awarded, this case highlights the importance of appropriate insurance coverage. If a hazard had not been addressed, someone could have fallen, leading to a major financial loss. Having general liability insurance ensures financial protection while allowing businesses to focus on growth instead of legal battles.
Final Thoughts
This case is a prime example of how cannabis-related businesses can proactively manage risk and protect themselves from frivolous claims. As liability exposures continue to evolve, dispensaries and other cannabis-related businesses should work with experienced insurance professionals who understand the industry’s unique risks.
For over a decade, Conifer Insurance Services has specialized in providing tailored coverage for dispensaries and other plant-touching businesses, ensuring you have the protection and guidance needed to navigate potential claims. Contact us today to learn more about how we can help safeguard your business.
