Cannabis business owners are having financial success which is a the reason they are in the business of cannabis. The benefits of financial success are obvious, but there is a stark downside as well. Cannabis business owners have too much cash. The federal government considers marijuana a Schedule I drug along the same lines as heroin, therefore businesses that profit from the sale of marijuana and marijuana related products such as edibles are technically in violation of federal law. With that in mind, you may be wondering where cannabis property insurance comes into play? The connection is simple, cannabis businesses have lots of cash on hand due to banks and financial institutions refusal to do business with the cannabis industry. Criminals love cash. When you combine lots of cash on hand with criminals. there is a legitimate cause for concern for cannabis business owners.
As long as the federal government continues to consider cannabis an illegal substance. the problem of too much cash will continue to exist for cannabis business owners. Criminals and thieves see a cannabis dispensary as a piggy bank ripe for the taking. Often marijuana dispensaries have inadequate security systems and are often left completely unattended after business hours. Seasoned criminals may be able to get in and out of your establishment quickly causing minimal damage, while less experienced criminals may cause twice as much damage to the property and products on site. Cannabis specific property insurance is a key component to protecting your business. You can’t predict when a criminal may try to break into your cannabis business, cause damage, and steal your hard earned cash, but you can be prepared to cover the loss. Property insurance allows for cannabis business owners to take some comfort in the fact that if they are ever robbed, the loss can be mitigated with a cannabis property insurance policy.
With millions of dollars in medical marijuana proceeds — all cash — being moved across Pennsylvania monthly in unmarked cars, state banking regulators have appealed to leaders in the U.S. Congress to create protections for financial institutions so that banks and credit unions might serve the state cannabis industry.
“We urge Congress to consider legislation that creates a safe harbor for financial institutions to serve a state-compliant business, or entrusts sovereign states with the full oversight and jurisdiction of marijuana-related activity,” states the letter from Pa. Secretary of Banking and Securities Robin L. Wiessmann.
State banking officials from Alaska, Connecticut, Hawaii, Louisiana , Michigan, Montana, Nevada, New York, Oklahoma, Oregon and Washington State also signed the letter.
The federal government considers marijuana illegal, although 31 states and Washingto
n, D.C., have legalized the drug for either medical or adult recreation use.
The handful of institutions that provide service to the marijuana industry are at constant risk of federal prosecution, asset forfeiture or criminal penalties.
At S2S Insurance our experienced cannabis insurance specialists will evaluate your potential risk based on all available data. Once the risk assessment is completed, a specialist can help you put together a risk management strategy that protects your cannabis business from the various but specific threats that face a cannabis business owner. Contact Eric Rahn at S2S Insurance today to receive a quote.