Cannabis Insurance laws are changing along with the marijuana industry and keeping on top of marijuana news is important for your cannabis business in order to make informed decisions on cannabis insurance. As the marijuana industry changes and sets new precedent when it comes to cannabis insurance, S2S Insurance Specialists are committed to bringing marijuana news from an insurance standpoint and how to mitigate risk for cannabis businesses, by seeing examples in the news of marijuana businesses who were not properly insured.

Elevate Your Grind Podcast: Eric and David Rahn, S2S Insurance Specialists

A graduate of Babson College School of Entrepreneurial Studies. Eric Rahn is an insurance broker specializing in hard to place coverages for domestic and multi-national companies. Eric has held many executive positions in regulated industries including the maritime and casino industries prior to becoming an insurance broker. He transitioned is knowledge of corporate business practices into becoming a top insurance producer by working with C-Suite executives on evaluating risk.

David Rahn is S2S Insurance Specialists’ business development and professional relationships associate, promoting insurance access opportunities for clients in the marijuana industry. David is responsible for connecting new and potential clients in the marijuana industry through traditional and digital channels. David received his degree in Advertising and Public Relations from Lynn University and has worked on coordinating and developed digital marketing strategies for Subway Restaurants, Lynn University, Saks 5th Avenue as well as other campaigns for various associations, non-profit organizations, and other businesses.

S2S offers a myriad of options when it comes to contacting one of our Experience of Brokers:

Schedule a call with us and confirm it with our S2S calendar here:

https://calendly.com/s2sinsure/15min

Call us Directly at (954)790-6604 or go to our website: www.s2sinsure.com

Email us directly: David Rahn- david@s2sinsure.com   Eric Rahn- eric@s2sinsure.com

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Trending Topic: Another Day, Another Lawsuit Against Cannabis Companies Here’s Why D&O Coverage Needs to Be Your Top Priority for 2021

Cannabis and hemp businesses – large and small – are increasingly becoming prime targets for litigation. There have been a slew of lawsuits filed recently by shareholders of cannabis companies, including Aurora Cannabis Inc., Medmen Enterprises, Canopy Growth, CannTrust Holdings, Aphria Inc. and Columbia Care, to name just a few. The only way to protect executives of your business from being personally liable is with Directors & Officer’s (D&O) Insurance. Here’s what a D&O policy covers and why it should be your top priority for 2021.

Industry experts expect a 50% spike in lawsuits as cannabis companies face heightened risks. Investors who wanted a piece of our explosive industry poured money into cannabis businesses. Not all companies delivered on their big promises. The coronavirus pandemic, rising costs and slower-than-expected demand caused some companies to – knowingly or unknowingly – overstate revenue and make misleading forecasts. Aurora, for example, allegedly did not inform shareholders it was planning to halt construction at one of its facilities, suggesting a decline in its business, and now it is embroiled in a multi-million dollar class action lawsuit.

 

One lawsuit can fold your business and put your personal assets at risk. Disgruntled shareholders alleging fraud and misinformation are seeking to recover significant damages – half-a-million dollars in the case of Canopy Growth. The only way to shield corporate officers from personal liability for negligence or misconduct is with D&O Insurance.

 

D&O coverage is often the most overlooked coverage because many cannabis and hemp businesses are small or independently run, and no one foresees the potential for operational failures and mismanagement. However, with all the risks cannabis companies face everyday, D&O should be a top priority in 2021 as one expensive lawsuit can put a company out of business. More frequently, we’re seeing prospective investors and board members requiring D&O insurance prior to engaging with a company in order to ensure adequate protection in the event of litigation. With proper D&O coverage, your company’s executives will be protected and your insurance will pay for legal damages and fees.

 

Finding an insurance carrier to provide you with D&O insurance can a challenge. Most major insurers do not offer cannabis D&O policies because cannabis is not legal under U.S. federal law. S2S Insurance Specialists insures the most difficult risks facing your company and is a leading provider of D&O Insurance. To learn more about how we can protect you and your business, call David Rahn at (954) 790-6604, schedule a free assessment online at www.s2sinsure.com or email david@s2sinsure.com.

 

S2S offers a myriad of options when it comes to contacting one of our Experience of Brokers:

Schedule a call with us and confirm it with our S2S calendar here:

https://calendly.com/s2sinsure/15min

Call us Directly at (954)790-6604 or go to our website: www.s2sinsure.com

Email us directly: David Rahn- david@s2sinsure.com   Eric Rahn- eric@s2sinsure.com

Follow Our Social Media Channels:

Twitter: @S2Sinsure       Leafwire: https://www.leafwire.com/profile/company/5bad2c8a6fa15f7c2350b04c

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The Cannabis Industry’s Growing Threat: Hackers and Cyber Fraud Is Your Cannabis Company Prepared & Protected?

Experian’s “Data Breach Industry Forecast” for 2020 predicted that emerging industries, namely cannabis, would increasingly become prime targets for cyberattacks and, so far, their predictions ring true. This year, our industry was the subject of several high-profile incidents, including the US Securities and Exchange Commission charging two men who allegedly used a fake cannabis company as a front for an online Ponzi scheme; the hack of a dispensary point-of-sale system that exposed the personal data of more than 30,000 people; and yet another hack of a widely used medical marijuana tracking software that left over 1,000 marijuana dispensaries unable to track their sales and inventories – forcing some of the victims to have no choice but to close up shop.

 

With the increasing threats of cyber crimes, many cannabis businesses are finding themselves in uncharted territory. The impact of a cyberattack or data breach can have a costly and detrimental impact on your operations. At S2S Specialists, we are here to guide you through the intricacies of properly insuring your business. Below, we discuss why Cyber Defense & Data Breach Insurance is critical and how it will protect you:

 

Seed-to-Sale Tracking and Identification Requirements Make Cannabis Companies Easy Prey For Hackers

Any business that collects personal data could face substantial liability in the event of a breach; however, the cannabis industry faces even more risk because of the amount of propriety information dispensaries and other cannabis businesses are required to collect. Online cannabis retailers are particularly vulnerable given their access to vast amounts of personal credit card information.

 

Furthermore, technology is heavily integrated into most cannabis businesses. For instance, many growers are required to keep accurate records of their inventory by state law and testing labs accumulate large amounts of sensitive product data through seed-to-sale platforms.

 

Given these risks, coupled with the fact that this is a rapidly growing industry operating in an uncertain regulatory environment, the unfortunate reality is that cannabis businesses are considered prime targets for cybercrime. One thing is for certain: data is becoming increasingly valuable.

 

How Cyber Defense & Data Breach Insurance Can Protect You and Your Business

 

Cyber Defense & Data Breach Insurance protects business owners from legal liability resulting from any type of breach, whether the information is leaked electronically or by some other means.

 

Cyber crimes can harm your business in numerous ways. For example, a cyberattack can interrupt the business’ normal operations, which would be considered a “first-party” loss. In the case of a data breach resulting in the disclosure of a third party’s private information, the third party could sue your business.  The SEC could also find your company negligent in cyber fraud cases and impose significant fines. Without Cyber Defense & Data Breach Insurance, your business could be solely responsible for expensive legal bills, significant revenue losses and hefty fines and penalties from regulators.

 

Many business owners are not aware that Cyber Defense & Data Breach Insurance isn’t automatically bundled into a Cannabis Insurance Policy, and thus, when they experience a loss due to a hack or data breach, they are not covered. It is important to reach out to your Insurance Specialist to discuss your needs and options.

 

 

In Summary

 

As cyberattacks become more sophisticated, Cyber Defense & Data Breach Insurance is a must-have coverage to protect your business from crippling losses. With the rapid pace of our evolving industry, many cannabis-related businesses are – understandably – not focused on having adequate insurance. Or, if they are, they generally focus on the more “obvious” coverages, such as property or product liability insurance. However, cyber fraud is a very real and costly risk that needs to be addressed. Even the smallest of cannabis businesses are vulnerable to cyber crimes and data breaches because they are part of a larger interconnected network of seed-to-sale vendors.

 

Do not wait until a cyberattack occurs before asking, “Am I covered?”  S2S Insurance Specialists can help you understand the cyber security risks of your cannabis or hemp company, review your policies and provide important coverages tailored to your specific needs.

 

S2S offers a myriad of options when it comes to contacting one of our Experience of Brokers:

Schedule a call with us and confirm it with our S2S calendar here:

https://calendly.com/s2sinsure/15min

Call us Directly at (954)790-6604 or go to our website: www.s2sinsure.com

Email us directly: David Rahn- david@s2sinsure.com   Eric Rahn- eric@s2sinsure.com

Follow Our Social Media Channels:

Twitter: @S2Sinsure       Leafwire: https://www.leafwire.com/profile/company/5bad2c8a6fa15f7c2350b04c

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Is Your Hemp Business Properly Covered?

Many Hemp businesses are finding out the hard way that they don’t have the right coverage. Below summarizes the policies you need, depending on where you operate in the Hemp Supply Chain.   Contrary to popular belief, the 2018 Farm Bill did not free hemp businesses from volatility and risk. Given the complex state-federal regulatory regime for […]

Product Liability Risks in the CBD Supply Chain You Need to Know About — Is Your Business Covered?

CBD has grown into a colossal $311.8 million industry that has attracted many entrepreneurs, from farmers and producers, processors and packagers, suppliers and distributers to wholesalers and retailers; and the supply-chain is growing as fast as the industry itself. Most consumers are unaware of the sheer complexity that goes into putting CBD products, spanning everything from pharmaceuticals to pet food, on the shelves. Moreover, they trust that the products they purchase are advertised correctly and safe for intended use, which is not always the case. In 2019, we saw a dramatic influx of product liability claims associated. One such lawsuit is enough to fold a business due to costly legal fees and fines, as well reputation damage beyond repair.

 

The complexities surrounding CBD legalities have left business owners in the dark about how to navigate the industry’s murky waters. S2S Specialists helps cannabis businesses (of all kinds) understand their own specific product liability risks at every step of their supply chain and provides insurance policies tailored to protect their livelihood. Below are some of the main risk factors that all CBD businesses should be aware of:

 

Product Tracing & Contamination

 

CBD made with THC is a highly regulated industry versus CBD containing hemp (no more than 0.3% THC). At the present time, there is no one regulatory body governing the hemp sector and that leads to a lack of testing, which results in a great risk of product contamination.

Many things can happen to a cannabis crop, ranging from pesticides to spoilage to equipment malfunctions, all of which pose a significant risk. Even if the original seed or flower was confirmed free of mold or contaminants upon sale, the grower can still be dragged into a product liability claim for contamination issues that are introduced along the supply chain.

For wholesalers and distributors who are concerned about the products they purchase from growers, cannabis Product Liability Insurance is necessary to safeguard your business.

 

For many retailers in the current industry, it is virtually impossible to trace a Hemp CBD product back to its original source (or seed) and verify the products are labeled accurately, safe and free of contaminants. Even if you can trace your cannabis from seed to flower, when the product moves along the supply chain, tracing becomes more difficult. You don’t always know who’s buying a particular strain or what they’re doing with the raw material. For example, if your product is going into a distillate, like a THC oil or a CBD oil, the company producing that distillate might be using many batches and strains of cannabis, which vastly increases the risk of contaminants.

 

Mislabeled Products & False Advertising

 

A 2017 study by researchers at Johns Hopkins School of Medicine and University of Pennsylvania Perelman School of Medicine found that more than two-thirds of the products they purchased online were mislabeled, containing more CBD or less CBD than listed on the label, or containing none at all. There are currently no federal testing requirements for legal, hemp-derived CBD, making it difficult for wholesalers, retailers, and end consumers to know if a “CBD” product is, in fact, CBD or if it isn’t laced with other substances.

 

Furthermore, companies and stores marketing CBD products often make unsubstantiated health claims. Take medical cannabis health and wellness operator Curaleaf, for example. The company was recently warned to remove all CBD health claims from their website and social media by the FDA. Similar to what happened in the dietary supplement market when it was emerging, lawsuits are targeting companies that sell CBD products without any scientific evidence to support their health claims.

That 0.3% limit on THC content is very important.  Many people will only try CBD because they are assured that there is no chance of psychoactive response.  If someone does experience such a reaction, there could be dire consequences, and the proper insurance must be in place to cover it.

 

Any CBD business that touches products, no matter where they are in the supply chain, needs Product Liability Insurance. If a consumer purchases and uses a product that is mislabeled, falsely advertised or results in bodily injury or damage, litigation will trace the product back from point of sale and your business could be held responsible.

Defective Products

Edibles are particularly vulnerable to product liability claims for various reasons. When cannabis is sold in an edible form, business owners could face claims of food poisoning or illness. Contrary to popular belief, just because a retailer did not make the defective product it sold, does not mean it cannot be held liable. When it comes to product liability lawsuits, it’s very difficult for companies to fund the often-extensive legal defense and settlement costs, which is why Product Liability Insurance is so important as it will cover the costs, so you don’t have to pay out-of-pocket.

 

What is Product Liability Insurance?

 

As a Board Member of the National Cannabis Industry Associates (NCIA) Risk Management and Insurance Committee, we define Product Liability Insurance as a type of coverage that “provides protection from bodily injury or property damage claims resulting from defective products that have been manufactured or sold.” In essence, Product Liability Insurance is designed to protect your cannabis company from claims that can happen anywhere along the supply chain.  With proper coverage, your insurance company will pay for damages and legal expenses if you are sued, up to your policy limits. Your liability policy will also cover medical fees of any other parties who are harmed by your business.

Product Liability Insurance is often overlooked by cannabis companies, especially those in the small or middle-market range. However, your cannabis business needs product liability insurance if you sell any goods or products that end up in the hands of the public. Period. In fact, your business may be contractually obligated to have certain types of insurance. Furthermore, to minimize risk, your business should demand certificates of insurance (and, ideally the full policy) from vendors to confirm protection in the event of a claim arising from another company’s product that you may sell to consumers.

 

It is extremely important to work with an insurance company, like S2S Insurance Specialists, who has a keen understanding of the cannabis industry and available coverages tailored to your specific operations. Taking steps to minimize your risk now will protect you and your company down the road.

 

We encourage you to contact S2S Insurance Specialists with any questions. We will examine your current policies, help you understand what is and is not covered, and adjust your policy, as needed.

 

The Growing Concern of Theft in the Cannabis Industry Is Your Business Covered?

The coronavirus (COVID-19) pandemic is forcing businesses in the cannabis industry, like many other industries, to examine and adapt their business models to – dare we say it – the new norm.  While many cannabis businesses have thrived despite the numerous risks inherent in the industry, including a lack of traditional capital sources, uneven regulation and intense scrutiny, this crisis is bringing heightened risks from burglary and theft to data breaches to a number of other ways criminals are seeking to capitalize on the crisis for their own financial gains. To this point, risk management and the need for effective insurance coverage has been on the back burner for many business owners. However, emergency preparedness needs to be top-of-mind with every business owner and operator.

Below are three types of insurances that should be part of your policy to protect you from crippling losses. We encourage you to contact S2S Insurance Specialists with any questions. 

 

Crime Insurance

Criminals are well aware that the cannabis industry includes many lucrative, cash-intensive businesses, which means you have a target on your back. In fact, the most common cause of loss facing cannabis businesses is theft. Approximately 90% of insurance claims in the US cannabis industry so far have involved an element of theft, according to Insurance Business Magazine (Dec, 2019). This new reality was recently punctuated in a recent article in the Denver Post, titled “Denver dispensary burglaries hit 3 year high as 2019 ended with a rash of armed robberies.”

 

Losses from an office burglary to destruction of property to theft of finished product can have a devastating effect on your business. The only way to ensure you get reimbursed from losses caused by certain illegal activities is to have Crime Insurance. Below are some of the common scenarios that Crime Insurance covers:

  • Employee theft of money, securities or property inside the premises.
  • Non-Employee theft both inside and outside the premises.
  • Forgery or Alteration, including inadvertently accepting forged checks or counterfeit money or employees altering checks, bank drafts and other financial documents.
  • Computer and wire transfer fraud.
  • Robbery of valuables while in transit under the care of a messenger or armored car.

Many business owners are not aware that Cannabis Crime Insurance isn’t automatically bundled into a Cannabis Insurance Policy, and thus, when they experience a loss due to criminal activity, they are not covered. It is important to reach out to your Cannabis Insurance Specialist to discuss your needs and options.

Open Cargo Insurance

S2S insurance, Eric Rahn, cannabis cargo theft, dispensary insurance, who insures the marijuana industry

Cargo coverage is a protective cannabis insurance, and it can help you recover the loss in such an event that your product is lost, damaged, or stolen while being either loaded, transported, or unloaded. Many business owners and distributors do not have cargo coverage because they thought their property coverage covers cargo. Having this type of insurance policy is a necessity for cannabis business owners that rely on any form of shipping.

The black market is booming for cannabis related products and thieves are hard at working plotting out ways to intercept cargo before a shipment reaches it’s destination.  Everything from growing supplies, to electronics, to raw and finished products are in high demand. Marijuana-related products can quickly become untraceable, and then repackaged and sold in a short amount of time making this type of cargo a likely target for thieves and organized crime groups that use bribes and other tactics to infiltrate supply chains.

In some states, retail stores are closed and companies are relying more heavily on delivery service. If your operation transports items via in-house or hired delivery, you need cargo coverage to protect your inventory and cash from loss.

Commercial Auto Insurance does cover the contents within the vehicle, rather it covers the vehicles from damage and the drivers and third parties from physical injury. A combination of Hired Non-Owned Auto, Crime and Cargo policies should be reviewed if your company has this exposure.

Cyber Defense & Data Breach Insurance

s2s insurance, eric rahn, cannabis data breach, cyber security, cannabis business, cannabis lab testing insurance, marijuana insurance

 

Cyber fraud is a very real and costly risk that is largely unaddressed within the cannabis community. Even the smallest of cannabis businesses are at risk of data breaches because they are part of a larger interconnected network of seed to sale vendors.

Particularly right now in the midst of the pandemic, more employees are working from home, which greatly increases your company’s risk of network vulnerability and data breaches. Given that many dispensaries collect patient/client personal information, a breach of even a single computer could provide hackers with valuable information on all their partnering dispensaries, product deliveries and clients’ private information.

The impact of a data breach reverberates and can have a costly impact on your operations. For example, if a company’s distributer, for example, detects the breach, your company can be held liable. To help mitigate risk, it is strongly recommended that you have Cyber Defense & Data Breach Insurance to protect you from costly legal claims.

In summary, the COVID-19 public health crisis has spurred all sorts of unexpected events and changes in the way business is conducted and how you are protected. Businesses are facing more serious threats as you try to adapt to the rapidly changing realities perpetuated by the pandemic.

We understand that insurance may not be at the top of your mind, but nonetheless, taking steps to minimize your risk now will protect you and your company down the road. Please contact S2S Insurance Specialists so we may examine your current policies, help you understand what is and is not covered, and adjust your policy, as needed.

How the COVID-19 Pandemic May Impact Your Cannabis Business & Ways to Minimize Risk

Cannabis companies may have gotten a boost when numerous states declared it an essential business that could remain open during the coronavirus (COVID-19) pandemic. However, businesses operating in the medical and recreational marijuana industry face numerous risks during these unprecedented times. Please take a moment to learn about some of the more common risks currently facing your company and please reach out to S2S Insurance Specialists with any questions.

 

Consumer Claims

It goes without saying that cannabis companies need to be extra careful about sanitation, safety, compliance and risk management – including having adequate insurance – during this public health crisis, and going forward. There will be lawsuits by consumers given the nature of how COVID-19 spreads and if your business allegedly fails to sanitize the premise, abide by social distancing rules or otherwise prevent the spread of COVID-19, your company may be at risk.

 

Also, consumption habits are changing how cannabis products are consumed.  The highly publicized dangers associated with vaping, coupled with the current pandemic – both in terms of the damage COVID-19 causes to the lungs and the need for social distancing – are shifting demand from smokable products to more edibles and tinctures. Edibles are particularly vulnerable to product liability claims for various reasons. Product Liability Insurance must be a top priority for any cannabis related business. Furthermore, to minimize risk, your business should demand certificates of insurance (and, ideally the full policy) from vendors to confirm protection in the event of a claim arising from another company’s product that you may sell to consumers.

 

Directors and Officers (D&O) Insurance may offer protection if executive-level business personnel are targeted in a civil lawsuit over claims they made or actions they took. For example, if a dispensary were to stay open against the state mandate or if it violates the state mandate on the number of people allowed in an establishment, and then is accused by a consumer to be the source of contracting the highly contagious disease, D&O insurance may protect the directors or officers of the company if the company is sued because of its actions. You should reach out to your insurance provider to better understand this type of coverage, how it can protect your company’s executives, and if it can apply to the current crisis.

 

Cyber Threats & Data Breaches

 

As the pandemic continues, more employees are working from home, even in the cannabis industry and particularly among administrative staff. This leads to a heightened risk for network vulnerability and data breaches. If your company stores private information about your employees or customers on a computer or server, you are legally liable for protection of this personal information. To help mitigate risk, it is strongly recommended that you have Cyber Defense & Data Breach Insurance to protect you from costly legal claims.

 

Business Interruption

 

Multiple states, including New JerseyNew YorkMassachusetts, and Ohio, have proposed legislation that would mandate business interruption coverage for alleged COVID-19-related losses even where policies have explicit bacteria/virus exclusions.

 

Business interruption coverage is commonly sold as a component of commercial property insurance policies to provide relief to an insured for lost profit and extra expenses when its business operations are disrupted by “direct physical loss or damage” to insured property. However, closing a business due to a threat of exposure or spread of COVID-19 is not “direct physical loss or damage” to insured property. It will be important to discuss your particular coverage with your insurance provider to understand your level of protection and if you meet your state’s requirements, should the legislation pass. If your cannabis business is disrupted, keep meticulous records of lost business income and other expenses in case of the need to file an insurance claim—and contact your insurance specialist for guidance.

 

In summary, the COVID-19 public health crisis has spurred all sorts of unexpected events and changes in the way business is conducted and how you are protected. We understand that insurance may not be at the top of your mind, but nonetheless, taking steps to minimize your risk now will protect you and your company down the road. It is important to note that the insurance landscape for the cannabis industry is ever-changing, especially during these unprecedented times. Please contact us so we may examine your current policies, help you understand what is and is not covered, and adjust your policy, as needed.

 

IF you have questions about your current policy, need help securing coverage for your business, or have any questions, please contact us by visiting us at our website,or schedule a call with an experienced broker.
 

Marijuana Delivery Robberies Becoming Commonplace

Since banks remain reluctant to work with marijuana dispensaries, the industry remains burdened with cash for the most part. Needless to say, the liability to cannabis companies that are holding large amounts of cash are obvious. Marijuana delivery robberies are becoming very commonplace in places like California.

In one town close to San Francisco called Concord, police are reporting marijuana delivery robberies are as frequent as four times a month. It only makes sense for these cannabis dispensaries to find the right sort of marijuana coverage to protect against these robberies. Lt. Mike Kindorf with the Concord Police Department recently spoke to reporters concerning these marijuana delivery robberies.

marijuana delivery robberies are on the rise and cannabis product liability is very important

“There’s a significant increase and talking with other law-enforcement agencies,” Kindorf said. “I know that Concord is not alone in that crime trend that it’s occurring in other parts of Contra Costa County as well.”

Because cannabis is still illegal in the eyes of the federal government, California pot sellers are stuck dealing in cash for the most part, which is luring in the criminal element, even more than the drugs.

“In a few robberies that we have they’ve targeted cash and not even touched the marijuana,” said Kindorf.

In December, a driver showed up for a drop off in the parking lot of the Bank of America near the Sun Valley Mall and was robbed by a handgun wielding suspect.

The thief grabbed both the pot and the cash but police later found a duffle bag stuffed with pot products abandoned by the side of I-680.

Concord Police believe that it’s a crime that’s underreported and even in the cases where police are called in, the victims often don’t want to cooperate.

“Even though it’s legal it seems to be a little bit of an off the grid business,” Kindorf said. “It’s kind a virgin territory that we’re in for sure.”

For instance in that armed robbery that happened near the Sun Valley Mall, police have a suspect but they’re having a hard time getting the victim to call them back so we can make a positive ID.

The financial risks associated with owning a marijuana company are made particularly obvious by so much cash being present. Cannabis product liability and insuring against theft is essential considering how often these marijuana delivery robberies are occurring. Reach out to S2S Insurance Specialists, Eric Rahn and David Rahn with any questions.

Read more at Kron4.com

International Forces Pressuring United States to Reschedule Marijuana

The EU Parliament decided rescheduling marijuana was the right thing to do after the World Health Organization recommendation
The EU Parliament Building

After Canada legalized marijuana in 2018 and Canadian cannabis companies completed exporting contracts for medical marijuana with European countries and other nations around the world, they immediately began violating international drug treaties. Either marijuana needs to be rescheduled by the U.N. so that those violations stop or they need to take some sort of action. The World Health Organization is recommending that they reschedule marijuana.

The mostly likely scenario seems to be that the U.N. will reschedule marijuana. The European Union Parliament recently rescheduled marijuana, so the trend seems to be heading in that direction in general. If marijuana were removed from its Schedule I status here in the United States, more cannabis insurance carriers would become available and we would see the cannabis industry begin to resemble more traditional industries and will face the same sort of liabilities.   

The World Health Organization (WHO) is calling for whole-plant marijuana, as well as cannabis resin, to be removed from Schedule IV—the most restrictive category of a 1961 drug convention signed by countries from around the world.

The body also wants delta-9-tetrahydrocannabinol (THC) and its isomers to be completely removed from a separate 1971 drug treaty and instead added to Schedule I of the 1961 convention, according to a WHO document that has not yet been formally released but was circulated by cannabis reform advocates.

Marijuana and cannabis resin would also remain in Schedule I of the 1961 treaty—they are currently dual-designated in Schedules I and IV, with IV being reserved for those substances that are seen as particularly harmful with limited medical benefits. (That’s different from the U.S. federal system, under which Schedule I is where the supposedly most dangerous and restricted drugs—like marijuana, heroin and LSD—are classified.)

Once marijuana is viewed like any other normal industry here in the United States, cannabis liability insurance, marijuana D&O insurance, cannabis workers compensation coverage and more will be commonplace. In the meantime the liabilities to insurance businesses are still very real and it behooves cannabis entrepreneurs to understand their marijuana coverage alternatives. Reach out David Rahn or Eric Rahn, your cannabis insurance specialists, to find out more.

Read more at Forbes.com

Understanding Why Cannabis Insurance Is Hard To Come By

Finding dispensary insurance, cannabis product liability coverage, marijuana crop insurance and other forms of coverage for cannabis is challenging due to the Schedule I status of marijuana on the federal level. Finding cannabis insurance specialists is also challenging because the industry is so new and insurance professionals are all still learning. That does not mean though that some insurance agents have not spent more time understanding the unique financial risks associated with being a part of the cannabis industry than others.

Insurance for marijuana dispensaries and processors can be difficult to find.

The banking restrictions may be one of the largest hurdles preventing larger insurance carriers from offering marijuana related insurance policies. The banking system is essential for most insurance companies and the fear of being accused of infractions such as money laundering by working with companies that touch the cannabis plant stops the large players from taking the risk.

“The whole conversation of cannabis crosses the desks of the most senior leaders of the insurance community as they determine whether or not they want to play in this game,” said Tom Fitzgerald, global broking officer at insurance broker Aon Plc. “There’s not every insurance company in the world anxious to write this stuff, at least not yet.”

“Just a few handful of carriers” will write policies for cannabis-related firms, said James Nelson, a retail insurance broker and owner of New Growth Insurance in Alameda, California.

Hartford, based in the Connecticut city of the same name, said it’s abstaining from the industry, and “that is unlikely to change” while the federal ban is in place.

“We do not underwrite any business that sells, grows, transports or distributes marijuana or products derived from marijuana cannabinoids,” the company said in an emailed statement.

There are all sorts for cannabis coverage alternatives for dispensaries, medical marijuana doctors, cannabis product liability insurance and much more. It has not been very easy for companies working with marijuana to find answers on how to cover their financial risks.

While other insurance companies may be too nervous to offer coverage to marijuana companies, S2S Insurance Specialists has embraced the burgeoning cannabis industry. Get in touch with Eric Rahn or David Rahn to discover the best marijuana insurance alternatives available to your company.

Read more at Bloomberg.com