Every industry that requires some form of cargo to be moved from one place to another, relies on ground shipping. Whether you’re selling clothing, dairy, steel, or cannabis, your products have to travel from a source point to a retail point. At S2S Insurance we recognize the risks associated with shipping cargo and our goal is to help cannabis business owners manage the risk of stolen cannabis cargo. Cargo theft impacts the trucking industry, retailers, insurers and law enforcement and also directly impacts the economy. Having a cargo/transportation/warehouse insurance policy in place allows cannabis business owners to mitigate the risk. This specific policy is geared toward protecting business owners if a shipment is stolen or damaged or if someone is injured during the process of transportation, by paying for damages that arise from the incident.
Much of the theft that occurs is conducted by organized crime rings that use bribes and other tactics to infiltrate supply chains. The groups organize and arrange for buyers once the goods are stolen so they can be transferred quickly and converted into cash or possibly other resources the thieves find valuable. There is a market for everything from building supplies, to electronics, and cannabis. Cannabis products have a specific appeal because the products have high value on both the legal traditional market, and of course the illicit black market. Cannabis and marijuana related products can be repackaged and sold in a short amount of time making this type of cargo a likely target for thieves and organized crime groups.
Cornell explains that some fleets don’t report theft, especially in cases where only a few pallets of goods disappear, something that he says is called “pilfered goods” and has been growing in the past year. From 2014 to 2016, thieves were focusing on “strategic thefts” of cargo. Cornell says this is most commonly seen with fictitious pickups and identify theft. In the past year, though, enforcement personnel have made ground in this regard and thieves have again shifted their tactics.
“Now we’re seeing more of a revision back to straight cargo theft,” Cornell says, where thieves follow tractor-trailers and pilfer the goods. In this case, the thieves simply open the back doors and unload a few boxes or pallets at a time.
At S2S Insurance we take a comprehensive approach to risk assessment when working with our clients. While a cannabis business owner’s main focus may be insuring the marijuana dispensary, we will look at the entire supply chain including the dispensary. It is critical that cannabis business owners work with experienced insurance professionals when considering risk management strategies to ensure exposure and risk is limited with the appropriate insurance policies. S2S Insurance can help cannabis business owners with property casualty, workers compensation, cyber defense, product liability, and more. It is also critical to remember that all policies are subject to policy limits and business owners should consult with not only their agent, but also an attorney when making decisions on which policies to choose.