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.

The History of Cannabis – A Quick Look At The History of the Plant

The cannabis industry in the United States and across the world continues to expand at a rapid pace. Canada, Jamaica, Argentina, Spain, The Netherlands, even Russia have either decriminalized cannabis for personal use or legalized recreational use, growing and the sale of cannabis. There are many other countries and regions where legalization and decriminalization are happening as well. As the world becomes more accepting of cannabis and begins to remove the stigma, we should take a closer look at the history of cannabis.

s2s insurance, eric rahn, cannabis history, cannabis insurance, marijuana lab testing insurance, liability insurance for cannabisMuch of the reasoning behind the legalization of cannabis deals directly in the history of cannabis. Cannabis is not something that hippies discovered for the first time during Woodstock. The use of cannabis in medicine can be tracked as far back as 5,000 years ago to Asia. It showed up in the Americas with the first European settlers because of it’s textile uses. Below is an excerpt from “A Complete History of Marijuana, According to Scientists” found at Marijuana Moment.

Before its medical properties became known, the fibrous plant was commonly used for textile manufacturing. Archeologists have discovered “sophisticated plaited basketry” based on cannabis at Czech Palaeolithic sites, for example.

“In fact, it has been referred to as the oldest known cultivated fibre plant and even today it is used as a constituent of fishing nets,” the researchers, who are from Italy and Sweden, wrote.

There are a couple schools of thought on this topic. But from a “Western-centered viewpoint,” researchers generally believe that natural events caused the plant to be accidentally burned, inadvertently revealing its “psychotropic nature.”

There’s certainly room for debate on this, but the researchers said that the timeline started about 5,000 years ago in China. The so-called “father” of Chinese agriculture, emperor Chen Nung, included the plant in the first Chinese pharmacopeia. That text said cannabis was prescribed for “fatigue, rheumatism and malaria.”

Marijuana didn’t show up on American shores for thousands of years after it was first discovered. It was “not known in the Americas until the ar

rival and settlement of the first European colonists,” according to the researchers. “During this period [cannabis] was used primarily for the strength and the resistance of its fibres.”

Swedish botanist Carl Linnaeus coined the term “Cannabis sativa” in the middle of the 18th century, the researchers wrote. Subsequently, French naturalist Jean Lam

ark distinguished between Cannabis sativa and Cannabis indica, writing that the former was a European plant and the latter came from “Indian origin varieties.”

history of cannabis, S2S Insurance, David Rahn, marijuana crop insurance, dispensary insurance, cannabis recommendationsThis snippet of the history of cannabis tells us that it has been around a long time with many uses and possible benefits. What the history of cannabis also tells us is that we are likely only scratching the surface as to what the full benefits of the plant are. Due to the Schedule I status of Cannabis, which makes it a controlled substance in the United States, there has been limited ability for scientists to study cannabis. Legalization of cannabis allows for scientists to take the history of cannabis and use modern scientific testing technology and knowledge to understand the plant and its benefits better. At S2S Insurance Specialists, we not only want to help you with your risk management needs, but we are also cannabis legalization advocates. A better understanding of the history of cannabis, the benefits of cannabis and the legal implications of cannabis, assists us in helping our clients in this complicated field. Contact Eric Rahn today for your cannabis business risk management needs.


THC Amounts The Same In Different Cannabis Strains According To Study

If you are in the cannabis industry chances are you know what the letters THC stand for. Tetrahydrocannabinol, also known as THC, is the principal psychoactive constituent of cannabis. THC is specifically listed under Schedule I by US federal law under the Controlled Substances Act for having “no accepted medical use” and a “lack of accepted safety.” According to Gallup’s most recent poll, 66% of American voters and everyone in the cannabis industry in the United States or worldwide, will tell you they strongly disagree with this classification of THC and the reasoning behind it. In order to change the United States government’s view on THC and other countries, it is important to understand this component of cannabis.

THC, Eric Rahn, cannabis insurance specialists, s2s insurance specialists, marijuana chemistryOne way to begin to have a better understanding of THC is to figure out how much of it is in cannabis? That is exactly what research from UBC’s Okanagan campus set out to do and was able to come to a conclusion. The research from the Canadian university determined that many strains of cannabis have virtually identical levels of tetrahydrocannabinol (THC) and cannabidiol (CBD), despite various claims and names given in the unregulated and regulated markets.

“It is estimated that there are several hundred or perhaps thousands of strains of cannabis currently being cultivated,” says Professor Susan Murch, who teaches chemistry at UBC Okanagan. “We wanted to know how different they truly are, given the variety of unique and exotic names.”

Cannabis breeders have historically selected strains to produce THC, CBD or both, she explains. But the growers have had limited access to different types of plants and there are few records of the parentage of different strains.

THC, S2S Insurance Specialists, marijuana insurance, cannabis lab testing insurance, understanding marijuana“People have had informal breeding programs for a long time,” Murch says. “In a structured program we would keep track of the lineage, such as where the parent plants came from and their characteristics. With unstructured breeding, which is the current norm, particular plants were picked for some characteristic and then given a new name.”

The research shows that most strains, regardless of their origin or name, had the same amount of THC and CBD. They further discovered that breeding highly potent strains of cannabis impacts the genetic diversity within the crop, but not THC or CBD levels.

“A high abundance compound in a plant, such as THC or CBD, isn’t necessarily responsible for the unique medicinal effects of certain strains,” says Mudge. “Understanding the presence of the low abundance cannabinoids could provide valuable information to the medical cannabis community.”

Cannabis has been around a long time, but many scientists and cannabis enthusiasts believe there is a great deal we still don’t know about the plant. An understanding of the amount of THC in various strains is not only interesting but can help states and countries make more sensible laws when it comes to regulation. This information can help cannabis testing labs establish more accurate baseline amounts of THC when testing cannabis for various reasons. At S2S Insurance Specialists we not only provide risk management strategies for cannabis companies, we are advocates for the legalization and safe use of cannabis. Contact Eric Rahn of S2S Insurance today for assistance with your cannabis business risk management strategy.


What Cannabis Directors and Officers Can Learn From Elon Musk

Cannabis business owners and managers wear multiple hats as they venture into the developing industry of cannabis. They have taken on the responsibility of growing their business which will not only impact them but anyone that has invested in their dream and shares in the successes and failures. Cannabis business owners have to make decisions that will increase revenue, market share, create exposure to new customers, improve customer service, and multiple other decisions that enhance the business. When decisions are made that harm the business, and therefore harm investors, someone must be held responsible for that harm. Those people who we hold responsible for making sound business decisions are the directors and officers of a company or corporation.

Marijuana Business Director and Officers Liability Insurance, Eric Rahn, S2S Insurance, David Rahn, cannabis insurance specialistsElon Musk is an extreme example of how a CEO’s decision making can put him or her in the sites of disgruntled investors, or in the case of publicly traded companies, the SEC. The Securities and Exchange Commission protects investors and the markets which people invest their hard earned money into every day. Musk sent out at hasty tweet that millions of people saw (many of which who invest in his company’s stock) and it impacted the price of his stock. The problem with the tweet is that it was not true or completely accurate. It became public and again his company’s stock price was impacted in a negative way causing investors to lose money.

The Securities and Exchange Commission has sued Tesla CEO Elon Musk for securities fraud after his aborted attempt to take the company private earlier this summer. The complaint, filed in federal court in the Southern District of New York, shows that the SEC is seeking to ban Musk from being able to hold officer or director positions at publicly-traded companies, as well as any other damages the court feels are appropriate.

“Musk knew or was reckless in not knowing that each of these statements was false and/or misleading because he did not have an adequate basis in fact for his assertions,” they write. “Musk knew that he had never discussed a going-private transaction at $420 per share with any potential funding source, had done nothing to investigate whether it would be possible for all current investors to remain with Tesla as a private company via a “special purpose fund,” and had not confirmed support of Tesla’s investors for a potential going- private transaction.”

Eric Rahn, David Rahn, Marijuana D&O Insurance, who insures the marijuana industry, cannabis insurance specialistsFor cannabis business owners, Elon Musk’s situation is extreme but does show the impact directors and officers can have on a business. As your cannabis business grows and the value of your investors’ investments grow, each decision you make will be that much more scrutinized. Executives and higher level managers can protect the company and themselves by investing in Directors and Officers insurance. D&O insurance policies protect you as a director or officer of the company if your actions negatively affect the company’s profitability or if the company is sued because of your actions. The policy will pay for legal damages and fees. As always policy coverage limits do apply so talk with a cannabis insurance specialist like Eric Rahn of S2S Insurance today.


Get Out and Vote for Marijuana Reform

Marijuana legalization efforts here in our home state of Florida and throughout the United States has triggered a paradigm shift in both policy structure and the perspectives of the masses. On the political side, the legalization of marijuana is now a social injustice, medical and economic issue. On the business side, massive markets such as the pharmaceutical, alcohol and tobacco industries are all watching closely as a rare financial threat to their industry has suddenly appeared. The growth projections of the cannabis space has many entrepreneurs eyeing the opportunity as well. For the people, the legalization of marijuana means potential clemency to loved ones serving time for nonviolent marijuana crimes, it could mean expunged records and also job opportunities as well. Going out to vote this November for marijuana reform means very little about the recreational use of marijuana and everything to do with improving the quality of life here in America.

Get out and vote for marijuana reform, Andrew Gillum, s2s insurance, Eric Rahn, marijuana business insurance, cannabis insurance specialists

Andrew Gillum

Here at S2S Insurance Specialists we identified early on that the cannabis industry is vulnerable to nearly every financial risk. As the industry moves closer to the mainstream and further away from the stigma of being a gateway drug, its evolution into a legitimate industry makes marijuana insurance essential. As an example of shift in perspective, here in Florida we saw a surprise candidate win the primary for governor, Tallahassee Mayor Andrew Gillum. He is campaigning as an advocate for legalized adult-use marijuana throughout Florida, among many other issues. In 2016, 71% of Florida voters approved a broad legal medical marijuana program, more than any other state so far. The new medical marijuana law was intended to open up access to a wide variety of cannabis products for Floridians suffering from a myriad of conditions. State legislators have done everything they can to slow down the growth of the industry since then, and little to correct the social injustice associated with marijuana prohibition. They have continued to strip the ability to vote from roughly 1.6 million convicted felons that have served their time already. Many of these convicted felons served time for nonviolent marijuana related crimes.

If we look over to the west coast, states like California, Colorado and Washington have embraced marijuana legalization and are major influencers for the rest of the country. Many of them have already begun the hard but necessary work of expunging the records of thousands of people convicted of marijuana related misdemeanors. California is the 5th largest economy in the world and despite federal threats, they continue to embrace cannabis legalization and will likely become one of the main hubs for marijuana around the world. Currently the marijuana industry is valued at about $10 billion here in the US and according to BDS Analytics it is projected to be worth nearly $50 billion by 2027. If those projections prove to be correct, marijuana will rival the alcohol and snack industry. At that sort of scale marijuana business insurance becomes as essential as it would be for any major industry. In order for the industry to reach these levels, it is likely that the east coast will need to embrace cannabis much like the west coast. We have seen Massachusetts and Vermont legalize adult-use marijuana and the commercial sale of marijuana is set to start very soon in Massachusetts. Both New York and New Jersey are working on bills to legalize recreational marijuana as well.

If we look at our nation as a whole, legalized cannabis impacts the lives of our military veterans, schools, the banking system and absurd federal taxes due to IRC 280E. Many of our military veterans depend on the VA Healthcare System which falls under federal law, so as a Schedule 1 substance the VA has refused to even acknowledge the testimonies of countless veterans claiming that marijuana has helped them re-acclimate to life at home as they struggle with conditions such as PTSD and chronic pain. Children struggling with chronic seizures from conditions such as epilepsy have come to depend on CBD products to provide them with relief and allows them to attend school. However, most public schools around the country will not permit the medicine on school grounds due to its Schedule 1 status. Chicago Governor Bruce Rauner, once a strong opponent to legalized cannabis, signed Ashley’s Law earlier this year allowing students with medical marijuana cards to use medical cannabis on school grounds. The only way these sorts of progressive policies spread to other cities and states around the country is if the people make their voices heard in the ballot box.

Vote for marijuana reform, eric rahn, cannabis insurance specialists, s2s insurance, cannabis insurance, cannabis testing facility Cannabis dispensary insurance may be the most important form of risk mitigation due to the banking restrictions marijuana companies face. Banks are nervous that if they accept deposits from marijuana dispensaries, the federal government will see it as money laundering. The end result is that they have to keep much of their revenue as cash stored in vaults which leaves them vulnerable to robbery from both external and internal sources. It also makes filing taxes that much more difficult since they do not have the benefit of bank record keeping. The additional paperwork is incredibly time consuming. Since marijuana is a Schedule 1 drug, marijuana sales are seen by the federal government as the trafficking of a controlled substance which means IRC 280E comes into play disallowing cannabis companies to write off normal business expenses. Many cannabis companies are forced to use GAAP cost accounting due to these restrictions making it even more time and resource intensive. The pioneers of the marijuana industry have elected to take on far more challenges than any traditional entrepreneur.

vote for marijuana reform, Ron DeSantis, s2s insurance, eric rahn, cannabis dispensary insurance, cannabis product liability, cannabis insurance specialists

Ron DeSantis

We have clearly outlined the relevant and meaningful reasons to get out in vote this November on the issue of marijuana legalization. The lines have been drawn in the sand for the most part. You will either be voting for marijuana reform or for continued prohibition. Here in Florida the general election takes place on November 6th and it is clear that if you vote for Andrew Gillum, you will be voting to fully expand Florida’s marijuana law to allow anyone 21 years of age or older access to marijuana regardless of medical conditions. If you vote for Ron DeSantis, you will likely see Florida continue to work with its current medical marijuana program much the same way as Governor Scott has managed it. On the ballot will also be Amendment 4, Voting Rights Restoration for Felons Initiative, which if approved will grant the right to vote again to the 1.6 million convicted felons that have served their time here in Florida. If passed, this amendment could significantly affect the outcome of future elections. For a full list of who is running in what district and what their stance is on marijuana legalization, please reference NORML’s FL site here.

vote for marijuana reform, end marijuana prohibition, Eric Rahn, s2s insurance, cannabis product liability, marijuana insurance, cannabis dispensary insurance

Wherever you may be around the country, this November may represent one of the most critical elections in US history. The current war on drugs promotes violent encounters between our law enforcement and the participants in the illicit marijuana market, along with harsh life changing penalties. The new proposed version of the war on drugs promotes the elimination of the illegal market through regulation of cannabis, much like we did with alcohol almost one hundred years ago. Most violent crime associated with marijuana is proliferated by prohibition. While marijuana’s status here in the US hangs in the balance, the risks for the industry become more apparent and furthers the need for true cannabis insurance specialists. How long can we allow this market to remain unregulated at the federal and state level? So, go out and vote this November and know that your vote may count more now than ever before.

Data Breach Increase Directly Impacts Cannabis Businesses

Legalization of cannabis has grown in popularity due to the recreational potential for some. People like the idea of being able to partake in cannabis freely after a long day, or before a night out, similar to the way we freely consume alcohol. For others, cannabis has the potential to help with all sorts of medical conditions from arthritis to cancer. Many states have legalized cannabis through the mechanism of medicinal use. The medical use requirement means that those facilities providing cannabis fall under the umbrella of medical facilities. These medical facilities are required to keep patient records, patient data, possibly insurance information, payment information and more. These facilities are the prime targets for cyber criminals who can exploit network weaknesses and expose cannabis businesses to a data breach.

s2s insurance, eric rahn, cannabis data breach, marijuana, who insures the cannabis industryA data breach is an incident in which sensitive, confidential, or other private date is accessed and/or disclosed in an unauthorized fashion. Data breaches may involve personal health information, personally identifiable information, trade secrets or intellectual property. A company that stores this information such as a medical cannabis provider is legally liable for the protection of this personal information. It is important to have proper security measures to protect the data, but cyber criminals are persistent therefore you’ll need additional protection. Data breach insurance is that additional protection. Marijuana data breach insurance protects business owners from legal liability resulting from this type of breach, whether the information is leaked electronically or by some other means such as a paper file.

Over an eight-year span, healthcare organizations reported 2,149 data breaches affecting 176.4 million records to the federal government, with almost every year bringing an increase in privacy incidents, according to new research.

To conduct their research, they examined all data breaches compiled by the U.S. Department of Health and Human Services Office for Civil Rights from 2010 through 2017. They found that, aside from 2015, the annual data breach tally increased each year, rising from 199 in 2010 to 344 in 2017.

Under the law, healthcare organizations that handle protected health information must report breaches of a certain size to the federal government. But that does not mean that every data breach gets reported or included in the count.

The size of each breach ran from 500 to 78.8 million patient records, with a median of 2,300 records and a mean of 84,456, according to the findings.

Healthcare providers were hit the hardest, reporting 1,503 data breaches that compromised 37.1 million records during the period in question. The number of incidents made up 70 percent of all data breaches included in the tally.
But health plans, which reported 278 data breaches, reported 110.4 million exposed records, or 63 percent of the pie, according to the findings.

Although most healthcare data breaches focused on paper or film, the 410 breaches that emanated from network servers bared 139.9 million records, nearly 80 percent of the total.

s2s insurance, eric rahn, cannabis data breach, marijuana cyber security, lab testing insurance, cannabis insuranceEven the best network security systems can be hacked or compromised in some way shape or form. Often the compromise is due to human error such as opening and clicking on links in a phishing email or inadvertently providing access to an outside threat. There are a number of variables that a business owner or cannabis medical provider can’t anticipate, which is where cannabis data breach insurance becomes necessary. Business owners should work with an experienced cannabis insurance specialist like Eric Rahn of S2S Insurance. As always all polices are subject to policy limits and should be reviewed with a cannabis insurance specialist and your attorney.


Need For Cannabis Crop Insurance On the Rise

As a cannabis business owner you have to be aware of every risk for each aspect of your business. While some business owners may be multi-million dollar corporations, others are much smaller with fewer resources to devote and even fewer resources they can afford to throw away. For those in the cannabis industry that have taken on the task of growing cannabis for mass production, many fall outside of the category of multi-millionaire. Cannabis crop growers have a number of balls to juggle when it comes to compliance such as weather, soil, and transportation to name a few. An area that can not be ignored is cannabis crop insurance.

marijuana crop insurance, s2s insurance, eric rahn, cannabis insurance specialists, cannabis crop insurance, who insures the cannabis industryCannabis agriculture is no different than any other aspect of the cannabis industry as it relates to insurance. Farm owners put in a great deal of time and money to grow cannabis crops and there are multiple risks that could derail their ability to produce a yield. With the threat of extreme temperatures, extreme wind, lack of rain, too much rain, wild fires, and other natural disasters, cannabis growers must have a line of defense in the form of cannabis insurance. Cannabis growers insurance is specifically designed to cover your needs as a legal marijuana supplier. Crop insurance does exist for typical crops, but the unique nature of cannabis and the it’s Schedule 1 status as an illegal drug, requires a specific policy to ensure coverage when you need it most.

COLUMBUS, Ohio – The plants are still small — about two or three inches tall — but a state-approved medical marijuana cultivation company announced it is on its way to providing one of the first crops of legal cannabis in Ohio.

The Ohio Department of Commerce awarded a certificate of operation to Grow Ohio Pharmaceuticals, in Muskingum County’s Newton Township, on Sept. 10. The company said it has plants in 20 small flowering rooms.

Since Ohio weather isn’t as mild as places such as California or Mexico, the farm is all indoors. It is not using greenhouses, either, and must rely on lights to initiate photosynthesis. It uses a unique form of energy – generated from food, oils and even sewer sludge – from a nearby Quasar Energy biogas plant.

Once the company gets the final OK from the state to begin processing – it has a provisional processing license in addition to its provisional a large-scale cultivation license – it can make oils, edibles and other products with the THC, the psychoactive ingredient in marijuana.

s2s insurance, eric rahn, cannabis crop insurance, marijuana insurance specialists, cannabis insuranceS2S Insurance is able to provide cannabis crop insurance to marijuana growers with coverage options designed to fit what you need as a cannabis business owner. Some things that can be covered include, living plant material, harvested plant material, and finished stock (processed plant ready for sale). Cannabis crop insurance not only protects you against natural disasters, but also theft, explosions, vandalism, water damage, smoke and more. Also, it is important to work with an experienced professional like Eric Rahn of S2S Insurance who can tailor a specific policy to your needs instead of a cookie cutter policy that may not fit everything you need or want. With the time and money you have invested in your business, take the additional step to work with a professional to protect you if and when disaster strikes.


Hurricanes Potential Risk to Cannabis Businesses

Every year towards the end of summer and early fall, home and business owners across the country pay close attention to the weather. While some may be checking to see when they can bust out the scarves and pumpkin spice lattes, others are concerned about hurricanes. Each year hurricanes do millions and in some cases billions of dollars in damage. These storms impact home owners, renters, traditional business owners and cannabis related business owners as well. As states legalize marijuana along the eastern seaboard, cannabis business owners will need to know what to do to protect their marijuana businesses when a hurricane is approaching.

insurance for marijuana, dispensary insurance, s2s insurance, eric rahn, cannabis insuranceHurricanes can develop quickly and bring significant flooding and strong winds especially to communities along the coast. Very similar to the wild fires of the west coast, insurers have catastrophe teams ready to respond if and when the storms produce significant property damage. “If a storm does cause property damage, it’s important to contact your insurer or agent as soon as possible so they can help you begin the process of restoring your business,” says Eric Rahn of S2S Insurance Specialists.

Officials in the potential path of a still fierce Hurricane Florence had a stern, clear message for people still in coastal towns under evacuation orders.

Leave. Now. “You put your life at risk by staying,” North Carolina Gov. Roy Cooper said. “Don’t plan to leave once the winds and rains start.”

Cooper and his South Carolina counterpart, Henry McMaster, told the more than 1 million people who have been told to leave that if they don’t, they are on their own.
McMaster told residents in some counties that emergency responders will be pulled from areas expected to be hit hard. “Even the rescuers cannot stay there,” he said.

Florence is forecast to crawl up to the North Carolina coast late this week and turn slowly left — a development that would smash the Tar Heel State with life-threatening storm surge, catastrophic winds and inundating rain while also endangering a large portion of South Carolina.

S2S Insurance recommends taking the following precautions:

  • s2s insurance, eric rahn, cannabis insurance, cannabis insurance professionals, who insures cannabisReview your cannabis property insurance policy, especially the “declarations” page, and check whether your policy pays replacement costs, or actual cash value for a covered loss.
  • Inventory your business, not only your merchandise, but computers, electronics, office furniture, display cases, point of sale systems, and all items of value. Take pictures and or video of all of them and keep all in a safe place.
  • Protect your property by covering all windows and doors with plywood or shutters if possible.
  • Keep all receipts of any repairs after the fact so you can be reimbursed by your insurance company.
  • Contact your insurance adjuster for referrals to professional cleaning services, salvage companies, restoration companies, if these additional services are needed.

As a cannabis business owner you do not want to begin thinking about hurricanes and the damage they cause after they have already destroyed your business. It is critically important that you cover your investment and your business with sound insurance policies that can help cover the losses after a devastating storm.


Product Liability Claims In Cannabis Bound To Rise As Investments Increase

The acceptance of cannabis use is on the rise across the country. Each year a few more states choose to legalize the Schedule 1 illegal substance, and support for legalization on the federal level is also on the rise. Not only are state and federal legislators taking a deeper look at cannabis but also investors. Besides venture capitalists and angel investors for startups, large corporations are beginning to stake a claim in the cannabis market. Constellation Brands is investing a record (for cannabis companies) $4 billion US into Ontario-based Canopy Growth Corp in a deal to produce non-alcoholic cannabis based beverages. This massive investment by Constellation Brands set off a wave of investments into marijuana related stocks. While this explosion of investment is good for the cannabis industry, the inevitable result will be a rise in product liability litigation.

dispensary insurance, marijuana edibles, s2s insurance, eric rahn, liability insurance for cannabisYou may be thinking, how can more investment in the cannabis industry be a bad thing that leads to product liability litigation? The equation is simple, more consumers using more products plus the law of averages. With increased medical and recreational marijuana use and sales there will in turn be an increase in potential litigation. Issues like negligence, breach-of-contract, intentional misrepresentation, marketing to youth, design defect claims all increase in their probability of occurrence every time the market, use and demand increase. As the market grows there will be fewer customers with a full knowledge of what they are consuming, which could lead to over dosing and other bad reactions. Customers may potentially sue for negligence or failure to warn in that instance.

Constellation, among the first big alcohol makers to invest in the marijuana industry, pumped almost US$200mln in Ontario-based Canopy Growth Corp (NYSE:CGC), last year in a deal to produce a non-alcoholic cannabis-based beverage. It recently upped its investment in cannabis with a record US$4bn investment in Canopy, spurring a buying frenzy in marijuana stocks.

“Fundamentally, we believe cannabis is going to be a big business worldwide … not going to be limited to Canada. This will be undoubtedly a market that develops in the United States, it’s already done so on a state-by-state basis here,” Newlands told the Barclays Global Consumer Staples Conference in Boston. “It’s developing around the world, in places like Germany and Australia and other markets. So the whole combination of things is shaping up in a way that this is going to be a big business.”

s2s insurance, eric rahn, insurance for marijuana, cannabis insurance specialists, marijuana businessIf there is increased investment in the cannabis industry, that should translate to growth and that’s good. With said growth comes an increase in potential for product liability claims, and that’s bad. Cannabis related companies can protect themselves with a cannabis product liability policy. A standard commercial general liability insurance policy isn’t adequate protection for the cannabis business owner. General liability polices contain Schedule 1 substance exclusions which would make the policies useless for cannabis/marijuana businesses whose businesses are centered around a federally illegal substance. Cannabis business owners should be working with experienced cannabis specific insurance companies and agents. At S2S Insurance Eric Rahn provides his clients with the experience and expertise to ensure they have a risk management portfolio that makes sense. “As your business grows, has your insurance coverage grown with it?” -Eric Rahn. Don’t find out the hard way that you don’t have the right coverage or the right amount of coverage.


Property Insurance Key Component to Protecting Cannabis Businesses

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.

s2s insurance, eric rahn, cannabis insurance, marijuana property insurance, cannabis insurance specialistsAs 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.

s2s insurance, eric rahn, marijuana insurance, marijuana property insurance, dispensary insurance, liability insurance for cannabis“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.


Cannabis Cargo Theft Real Threat to Cannabis Related Businesses

Most any business that has some form of retail merchandise to sell, likely relies upon cargo, transportation, and/or warehouses. Retail goods need to be moved from one location to another and cannabis related products are no different. Where the cannabis related businesses are different is that if that if cargo or merchandise gets stolen, the black market is very extensive and the products are virtually untraceable once stolen. Cannabis cargo theft is a legitimate risk to marijuana related businesses and their ability to turn a profit. A lost shipment of paraphernalia would be a set back and could cause serious financial problems, but even worse would be the loss of a shipment of marijuana related products such as edibles, flowers, plants or oils. If you’ve already paid for merchandise and become a victim of cargo theft, how do you recover  your loss? Cannabis cargo insurance is the best way to protect business against cargo theft once all other precautions are taken.

S2S insurance, Eric Rahn, cannabis cargo theft, dispensary insurance, who insures the marijuana industryCargo insurance provides coverage against physical damage or loss of goods during shipping, whether by land, sea or air. There are a number of inherent dangers involved in shipping, therefore the cannabis insurance specialists at S2S Insurance suggest using a cargo insurance as a staple in your cannabis related business portfolio to protect against cargo theft while in transit or while in storage. Cargo theft is becoming more advanced and requires cannabis businesses to stay ahead of would be thieves. Thieves will create fraudulent businesses to arrange for non-existent pickups and will find other ways to exploit gaps in supply chains by leveraging technology to do so.

Ringleaders Roberto Santos-Gonzalez, 37, and Carlos Enrique Freire-Pifferrer, as well as commercial truck drivers Juan Perez-Gonzalez, 44, and Eduardo Hernandez, 55 were sentenced. They were named with nine others in a 23-count indictment that charged them with participating in a conspiracy that operated from August 2012 to May 2015 and stealing $30 million in high-value merchandise carried by semi-trucks.

Members of the group would reconnoiter warehouse distribution centers run by national companies that distributed products including electronics, clothing, pharmaceuticals and cigarettes. The crooks would watch a center, then follow a semi-tractor and trailer leaving the building. They would steal the tractor and trailer when the driver stopped at a truck stop.

The crooks typically abandoned the tractor less than 20 miles from the truck stop and hooked up the trailer to another tractor driven by a member of their gang. The load would be driven to Louisville, Ky., where plans were made to resell the goods.

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