The cannabis industry is growing, and it is no secret. 30 states across the country have legalized cannabis for medicinal use and 9 different states have both medicinal and recreational marijuana. As the states legalize the drug, the cannabis market in these states has created opportunities for multiple business types and business owners. If you are opening a cannabis business you undoubtedly have a great deal of responsibility and are constantly reviewing what your company needs and what expenses you can save. One of those expenses you must account for is cannabis insurance.
Every small business should protect their assets with insurance, and for marijuana companies, they need cannabis insurance. Defending against claims and lawsuits can be a costly and a time-consuming process. Yet many cannabis business owners risk everything they’ve worked for by not having a risk management strategy. There are multiple types of essential cannabis specific insurance coverage options for cannabis business owners, both large and small. S2S Insurance provides multiple types of insurance: D&O – Directors and Officers liability, EPLI-Employer’s Protection liability, Product liability, Cargo/Transportation/Warehouse, Professional liability, Worker’s Compensation, Property and Casualty, and Cyber Defense.
Since the 1970s, law enforcement officers across New England have stored marijuana they seized in secure evidence lockers purchased from Donnegan Systems in Northborough.
Today, the storage solutions company says a full 10 percent of its revenue comes from licensed marijuana cultivators, which are snapping up its sliding “ActivRAC” shelves to maximize the amount of cannabis they can grow in a warehouse. And with recreational marijuana sales about to start in Massachusetts and other states contemplating their own commercial cannabis markets, Donnegan Systems chief executive Jeffrey Loreaux expects that figure will soon pass 20 percent.
“We’re already reinvesting the money we’ve made in cannabis,” Loreaux said in an interview. “We’ve hired more service technicians, more salespeople, more installation crews — it’s provided a lot of growth and it will continue to. We definitely see a huge opportunity here.”
It is important for cannabis businesses to partner with an insurance carrier that understands the cannabis business so that the policy can be tailored to fit its specific needs. For instance, if your business subcontracts some work to others, it is important for the policy to cover the work of those subcontractors. It is also important to remember that a standard insurance policy may exclude certain contraband such as marijuana. Cannabis is still considered a Schedule 1 drug by the DEA and is therefore illegal federally. The federal illegal status of the drug has not stopped legalization in individual states, but it does preclude some standard insurance policies from paying out should an incident occur. Working with an experienced cannabis insurance professional like Eric Rahn of S2S Insurance will allow you as a businesses owner to develop a risk management strategy specifically crafted for your cannabis business. As with any insurance policy, coverage limits do apply and therefore you should always review your policy with an experienced insurance agent along with your attorney. Contact S2S Insurance Specialists today to develop a risk management strategy for your cannabis business.