Insurer Says Hemp Processing Co. Not Covered For Fire

Law360 (January 14, 2020, 5:29 PM EST) -- An insurance company has filed a federal suit in West Virginia in a bid to evade covering a CBD business following a chemical fire that broke out at a hemp processing facility, which the insurer said started after an employee used a heat gun near acetone and methanol.

Kinsale Insurance Co. on Monday filed its suit against the West Virginia-based JDBC Holdings Inc., which does business as The CBD Factories. The Virginia-based insurer said that after the chemical fire, the insurer learned that JDBC had made misrepresentations about the sprinkler, alarm and security measures in place at the facility.

"These misrepresentations were...

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