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S2S Insurance Helping Cannabis Businesses Protect Their Property

The legal cannabis industry in the United States is a new market and filled with uncertainties and risks. At S2S Insurance we aim to help cannabis business owners understand those risks and plan appropriately. For cannabis business owners, one of the most complex issues they face is being forced to deal in cash. Due to the Schedule 1 classification of cannabis by the DEA, cannabis business owners can not easily open deposit accounts and work with digital forms of payment like traditional businesses. This inability to safely deposit cash in a bank creates multiple risks that every owner must consider.


While it is impossible to be able to predict what may happen in the future, S2S Insurance and our agents pride ourselves on being able to look at all available data and use that information to put a strategy together for our clients. At S2S Insurance a major concern for any of our clients is how they protect their property. Because our clients are forced to work with large amounts of cash there is a greater risk for vandalism, robbery, break-ins, and physical damage to property among other risks. A cannabis business owner has to assume that at some point criminals will try to illegally gain access to and steal any cash or product on site.

This grievous risk to life and limb is not exclusive to this unfortunate man. His episode is just one of many frightening and shocking events that are occurring throughout the emerging legitimate cannabis landscape. Marijuana-related businesses (MRBs), even after being legally established under state law and operating under strict regulations and oversight, nonetheless cannot open a simple deposit account at a bank owing to inconsistent, conflicting federal regulations.

Under the current federal prohibition of marijuana many banks, fearing potential repercussions, simply refuse to do business with marijuana growers, extractors, distributors, and sellers— even ones that operate legally in their own respective states. As a result, MRBs are forced to operate on a cash-only basis, making them prime targets for robberies, kidnappings, and extortion.

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The question on your mind by now is likely, how can S2S Insurance protect my cannabis business from robberies or vandalism? The truth is, we can’t, we as a cannabis insurance agency can’t stop a crime or instance of peril from happening to your property or your business. What S2S Insurance can do is help mitigate the risk if it does occur. As an insurance agency, S2S Insurance agents will review all relevant data with you, the business owner, and form a risk mitigation strategy. If the unfortunate does occur you can take some comfort in knowing you have an insurance policy that can cover a portion if not all of the damage after the deductible. No matter what risk management strategy you choose for your specific business, policy limits will apply. It is critical that you review your policy with your agent and attorney to understand coverage and limits. S2s Insurance has knowledgeable and experienced agents ready to help you form a risk management strategy for your business today.