What used to be considered an illicit drug in most countries is
now a decriminalized plant with some medicinal potential. Cannabis
is in the midst of a global transformation into a major industry
with massive investment and growth potential.
Canada was the first G20 nation to fully legalize the
cultivation, processing, sale, and possession of Cannabis at the
federal level on October 17, 2018. Significant steps towards
federal legalization have also taken place in the US, Australia,
South Africa, Jamaica, Israel, and many other countries.
We could speak forever just about the cannabis industry and the
road to 2021, but as forensic accountants who specialize in
economic damage quantification, the subject of this article is
around lost profits exposure in the cannabis industry.
Specifically, we will discuss the challenges and key considerations
when attempting to quantify the lost profits that can arise from
either first-party exposure from an insured event or
