Quadscore Insurance Services, one of the key carriers for cannabis, is placing a major emphasis on understanding their client's lighting exposures. Lockton consulted with them to better understand what they are seeing in terms of losses related to this risk and they supplied us the chart to the right. Over 30% of their property losses are due to fires and approximately 3/4 of those fire losses are a direct result of the lighting used in cultivation facilities.

They also provided us their lighting best practices document for reference - linked below.


Some other notes from our conversation with them:

  • If LEDs are not implemented, an insurance applicant must demonstrate excellent attention to safety - often with regular bulb replacement, contracted electricians, and appropriate safeguards around the lights in question to obtain meaningful insurance coverage. 

  • Quadscore has LED lighting partnerships with FOHSE and RevMicro, where their clients are eligible for special discounts. 

  • Multiple carriers introduced a 'lighting supplemental' years ago aimed to help these insurers understand the applicant's potential lighting risk. Clients can expect to need to complete this application before quotes will be issued.

  • As it currently stands, operators with outdated lighting can expect to pay higher premiums and deal with more restrictive policy language from their insurers.