The legal marijuana business sector may be relatively new compared to, well any other industry, but that does not change the fact that traditional best practices still apply. Many cannabis business owners may have a mentality towards risk. They may feel like they took a big risk in the first place entering into the industry and that diving into the business simply means that you have to accept the risks that come with working with a substance that is listed on the Controlled Substance Act. While that may be the right attitude, delving into the details is merited so that a marijuana business owner is making wise decisions and not taking on anymore risk than they absolutely have to. Be conscious of the risks you are taking by understanding them entirely and provide financial security wherever you can through marijuana insurance policies. The best way to begin is by selecting a qualified cannabis insurance broker.
- Not all retail or internet insurance brokers fully understand the Cannabis Industry.
- Does your current broker stay current with national and state regulated cannabis industry?
- Cannabis insurance market is a very limited market and not available to all agents and brokers.
- Read policies very carefully as you may be paying for a policy that does not cover your exposure/risk.
- Ask lots of questions when interviewing an insurance broker.
- Ask for references from existing cannabis clients.
- Not all policies are written the same. Read the endorsements and exclusions to make sure they include cannabis companies.
In the years that S2S Insurance Specialists has been operating, we have noticed an almost blasé attitude towards risk mitigation in the cannabis space. If you are taking your business seriously, than you must take risk mitigation seriously. Do you really think that fire hazards are less likely for a marijuana business? Do you believe that sexual harassment does not exist within the confines of your walls? Do you not think you are vulnerable to theft? If you do think these things then you are not paying attention to the news. Many fires have broken out at dispensaries, in fact explosions have occurred especially for those companies specializing in marijuana extracts where at times dangerous equipment, high pressure and volatile chemicals are mixed together. And, criminals are well aware that the marijuana industry is cash heavy.
The real challenge for marijuana companies in terms of understanding their financial risk is a lack of cannabis insurance professionals. Most insurance agents are avoiding the cannabis space due to its Schedule 1 Controlled Substance Act status and also are not doing their due diligence in researching this restrictive sector. Cannabis business owners are skeptical that the insurance agent they are speaking with don’t even know the specific and oftentimes unique risks associated with the marijuana industry.
Whether you grow and cultivate marijuana, own a cannabis dispensary, manufacture extracts or own a marijuana lab testing company, these are all jobs that involve handling the marijuana plant. It is these specific industries that really have to contend with the federal illegality of cannabis rather than most ancillary businesses associated with marijuana, though they too should be conscious of their risks. If your company is in the United States, Canada or any other country, insurance for marijuana is very much worth looking into. The challenge is finding the marijuana insurance specialist that can direct you to the right policies for your business and turn cannabis insurance into an asset of your company.
Ask your insurance specialists; what are the current national and state marijuana insurance carriers? Ask what type of policies they are presently working with. Ask them if they are licensed marijuana insurance specialists as the field is very limited. Ask questions, lots of them, and make sure they are not just placating you to earn your business without considering what is truly in your best interest. As a marijuana business owner it behooves you to really read through your entire policy and see if your agent is taking the time to clearly walk you through the policy. What are you most interested in? The answer is marijuana policy exclusions and endorsements. If the insurance agent is only showing you the advantages of the policy, then they are focused on selling exclusively. Big tip, read your marijuana policies backwards. Start on the last page, that is where you will find the exclusions, what the policy does not cover.
Marijuana insurance specialists will have endorsements from the clients they are working with. Ask for their references. If an insurance agent does not have any marijuana insurance references, that likely means it is not their focus and that they do not understand entirely the very policies they are showing you. True marijuana insurance specialists, like you find with Eric and David Rahn at S2S Insurance, will be very frank with you right from the beginning by explaining that the cannabis industry has a lot to navigate due to the restricted status of cannabis. They will inquire about which state you are based in and then delve into the details of that particular state’s marijuana insurance policies. They will also discuss the national policies towards marijuana whether it is in the United States, Canada, Mexico or outside of North America.
Here are the main points. Not all marijuana insurance policies are the same, so read them. Read policies starting from the last page so that you first understand the exclusions, what the policy will not cover, and see if there are any endorsements. Remember that not all internet or retail insurance agents understand the restrictions surrounding the marijuana industry. Not all insurance agents are licensed to underwrite marijuana insurance policies either. Marijuana policies are in flux in each state and country, so your marijuana insurance agent better be confident when explaining to you the most current policies concerning marijuana in your particular geographic location. Read policies carefully and ask for references. Like any other business, marijuana companies need employer protection insurance, D&O insurance, liability insurance, workers compensation insurance and crop insurance. The challenge is understanding the limitations to a policy due to the legal restrictions surrounding marijuana and discovering that the marijuana insurance policy is crafted around those restrictions and designed specifically for a marijuana business.
S2S Insurance Specialists understand cannabis insurance for recreational marijuana, medical marijuana and all of the businesses associated with the cannabis industry. We have the licenses and knowledge to direct you to the policies that will provide the exact coverage your company needs. When speaking with a marijuana insurance specialists at S2S Insurance, you will feel confident that you are being provided with the best possible service for you, your directors and officers and overall operation. Organizing and optimizing a business in a restricted industry like marijuana may be more essential than it is in the traditional business space. S2S Insurance Specialists can guide you to the marijuana insurance policies that will optimally cover the unique risks associated with your business.