All cannabis related business owners have unique issues and concerns that do not apply to traditional business owners. As a cannabis related business owner the biggest concern is the legality of the product you sell. Marijuana is legal in many states but is a Schedule I drug according to the DEA and is illegal federally. A marijuana business owner has no control over what happens to the legality of cannabis, but they can minimize their risk exposure. Cannabis insurance, specifically property and casualty insurance, protects against property losses and losses that may result from a lawsuit due to negligence.
Property and Casualty insurance can be broken into two types of coverage in one. The property piece of the policy will protect the assets of your business if they are damaged by a random event such as a storm, theft, or vandalism. The casualty piece of the policy will cover the business if you’re sued for negligence whether it’s you the business owner or one of your employees. If someone slips and falls in your dispensary and requires medical attention, that person might file a lawsuit against your business for damages. Losing a negligence case in court could mean you are liable for for tens or hundreds of thousands of dollars. With this form of cannabis insurance you’ll be covered not only for the damages but also the attorney fees.
A Marijuana grow operation in Southeast Portland caught fire twice overnight. The first time was Tuesday evening, the second time was early Wednesday morning. The second fire destroyed the business’s storage and office warehouse building. Photo courtesy Portland Police Bureau
“Obviously re-kindle is always a question we want to know for ourselves if there is anything we could’ve done or should’ve done differently, but then we have to do our due diligence for the occupants in the business owners and make sure there wasn’t anything nefarious going on,” said Cpt. Louisa Jones of Portland Fire and Rescue.
The grow operation which is housed in a warehouse next door was not damaged, just the office and storage area.
In the case of property damage there are other concerns that business owners have to manage. Depending on the amount of damage from a storm, fire, or vandalism, your business may have to cease operations until the damage can be assessed and repaired. If operations are suspended, this will undoubtedly negatively impact your cash flow. Fortunately, cannabis insurance covers operations interruptions. Put another way, if you have to stop running your business for a duration of time due to circumstances out of your control, then you are eligible for compensation covered by your policy. S2S Insurance can help you assess your level risk and plan accordingly. “What”s your tolerance for risk? How much can you afford to lose? Are you properly covered?” – Eric Rahn, CEO S2S Insurance. Knowing your level of risk exposure and planning for those risks can provide peace of mind in an industry that keeps business owners concerned about what is coming next. Contact S2S Insurance today to determine the level of cannabis insurance your business needs.