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.

California Cannabis Business Owners Remain at Risk As State Congress Rejects Banking Measure

Cannabis business owners are in the marijuana business to make money, which has become a major problem. Cannabis business owners are dealing with a reality in which they are having marketing and retail success that is generating large revenue numbers. The large revenue being generated is coming in the form of cash and cash only, unless the company is an ancillary business and even then there are challenges. Due to the federal government refusing to remove marijuana from a schedule I classification, banking institutions and cannabis business owners are having a tough time finding common ground. While it is true that a number of states have legalized marijuana either for medical use, recreational use or both, many financial insinuations  are refusing to work with marijuana related businesses due to fear of facing federal charges for money laundering while the plant is still considered illegal federally.

S2s Insurance, Eric Rahn, cannabis insurance specialists, Schedule 1, marijuana business, cannabis ancillary business, weed insuranceCalifornia has attempted to shield it’s financial institutions from federal punishment by introducing a measure that would allow the banks to open accounts for marijuana businesses without being punished by federal regulators. The measure was voted on and rejected by the state’s congressional committee. For the banks and cannabis business owners, their hands remained tied. Banks cannot risk federal prosecution for money laundering or even possibly a RICO (Racketeer, Influence, and Corrupt Organizations Act) charge for helping a cannabis related business deposit money into a bank. The federal government could come in at anytime to freeze and or seize the bank’s assets due to the illegality of marijuana which most banks are not willing to risk.

The broader measure would have prevented the U.S. Department of Treasury from taking any action to “penalize a financial institution solely because the institution provides financial services to an entity that is a manufacturer, producer, or a person that participates in any business or organized activity that involves handling marijuana or marijuana products” in accordance with state or local law.

After a lengthy and impassioned debate during which at least 19 lawmakers spoke, it was defeated on a voice vote by the House Appropriations Committee.

Despite the fact that a growing number of states are legalizing marijuana for recreational or medical use, many financial institutions have remained reluctant to work with cannabis businesses for fear of running afoul of money laundering laws under ongoing federal prohibition.

s2s inaurance, eric rahn, weed banking, cannabis related business, cannabis insurance specialists, marijuana insuranceThe risk for the banking institutions is clear, frozen assets or seized assets both equal lost money. There is no insurance policy that can protect a bank if they are charged with federal crimes. The banks are protecting themselves by not working with cannabis business owners or cannabis related businesses. So how do cannabis related businesses protect themselves and from what exactly? While piles of cash seems like a good thing, the reality is that this creates a major liability and risk factor for business owners. As the money grows, storage becomes a problem. Where do you put large stacks of highly valuable and flammable currency? How do you transport it? And, how do you protect your business from would be thieves who know you have large amounts of cash on hand?

There are steps you can take logistically, such as large safes, special storage facilities, armored vehicle transport, and accounting teams designated for counting cash and keeping track of where the money physically is located. All this is very costly, but even with all this your business could easily become a target for a robbery. Your business could be targeted during business hours, after hours, or while the cash is in transport. As a cannabis business owner you should protect yourself, your team, and your business by working with the cannabis insurance specialists at S2S Insurance to properly assess your risk and develop a risk management profile. From Eric Rahn of S2S Insurance, “your cannabis business can’t afford to not have cannabis insurance.”


Cannabis Businesses Have To Trust Their Insurance Partners

A federal court in Colorado recently decided a cannabis case that may impact the marijuana insurance industry and cannabis businesses. The case involves a cannabis company suing its insurance company for failing to pay on claims. The insurance company denied the claims that fell under their general liability policy covering the company’s crop and an additional claim for robbery and damages as a result of the robbery. The insurance company actually took a counter-intuitive approach and argued that it’s own policy was an illegal contract based off the federal Controlled Substance Act. The court, correctly, dismissed that argument and sent the parties to arbitration over the remaining claims. s2s insurance, eric rahn, cannabis insurance, marijuana, cannabis businesses, cannabis only insurance

From an S2S Insurance perspective, this case is absolutely infuriating. Cannabis businesses and cannabis business owners have accepted a very challenging endeavor and often have invested their own hard earned time and money. The cannabis industry is complex, involving varied business types, sometimes under one company. Business owners have to deal with owning or leasing buildings, equipment, crops, flowers, oils, edibles, cash management, transportation and more. Cannabis businesses need reliable business partners, not adversaries willing to sabotage their own interest to negatively impact their clients during a time of need.

ArcView Group, which tracks the legal marijuana markets, recently estimated that legal U.S. pot sales could reach $6.7 billion in 2016. As the legal marijuana economy has grown, insurance coverage for this emerging industry has become a hot topic. The U.S. District Court for the District of Colorado in The Green Earth Wellness Center, LLC v. Atain Specialty Insurance Company, No. 13-cv-03452-MSK-NYW, 2016 WL 632357 (D. Colorado Feb. 17, 2016) was recently faced with determining the extent of coverage under a commercial property policy for damage sustained to marijuana plants at a growing facility and addressing whether legal marijuana was even insurable.

Finally, the Court declined to follow Tracy v. USAA Casualty Ins. Co., 2012 WL 928186 (D. Hawaii March 16, 2012) and declare the policy unenforceable as against public policy citing, in particular, the “several additional years evidencing a continued erosion of any clear and consistent federal public policy in this area.”

The Green Earth decision emphasizes the need for insurers writing risks in the developing legal marijuana industry to be as explicit as possible in their policies as to what is and what is not covered.

S2S Insurance, Eric Rahn, cannabis businesses, marijuana liability insurance, cannabis liability insuranceCannabis businesses require an insurance company that knows the marijuana industry and has intimate knowledge of insurance and how the two work together. Some insurance companies try to fit their round insurance mold into the square peg of the cannabis industry, and in doing so cannot protect their clients the way their clients need to be protected. At S2S Insurance we are commercial cannabis insurance experts who work with dispensaries, growers, cultivators, realtors, equipment manufactures, laboratories, and a number of other businesses within the cannabis industry.

When speaking to Eric Rahn of S2S Insurance about this issue he stated, “Your insurance specialist should be a key adviser to your business, just as your accountant and your attorney.” Cannabis businesses and cannabis business owners must take the time to work with an experienced team like S2S Insurance and do a comprehensive risk analysis to protect said business. Your insurance partner should be helping to protect you as you grow, not sue you when you hit a bump in the road. 


Product Liability Insurance Protects When Products Attack

As a cannabis business owner that sells a product, there is a risk of being sued because of that marijuana consumption product you provide can be faulty or malfunction, in which case product liability insurance becomes a necessity. Cannabis business owners, just like traditional business owners, can be sued by others for any damage resulting from use of their products. Eric Rahn is an experienced insurance broker for S2S Insurance and explains product liability insurance this way, “Are you covered if you have a product defect? Can you afford to cover a large financial loss? That is what product liability insurance is for”. S2S Insurance provides cannabis product liability insurance and insurance for the marijuana industry, paraphernalia industry and hemp insurance.

Product liability insurance pays for your damages and legal expenses if you are sued up to your policy limits. You liability policy will also pay for medical fees of others who are harmed by your business. At S2S Insurance we view product liability insurance as an extra layer of protection when it comes to your cannabis related product line. As regulation of the cannabis industry increases, better standards of care will be put in place that can help reduce risk to the general public. At S2S Insurance we believe that a similar level of protection should be in place for business owners in case there is ever an issue with their product.

Bayer shares plunged Monday after subsidiary Monsanto suffered a huge blow last week following a jury awarding a California groundskeeper $289.2 million in a landmark lawsuit claiming the company’s weed killer Roundup causes cancer.

A California jury concluded the Monsanto’s Roundup and Ranger Pro products presented a “substantial danger” to terminally ill 46-year-old Dewayne “Lee” Johnson, who became sick with non-Hodgkin lymphoma after using the spray for more than two years as a groundskeeper for a school district outside San Francisco. Jurors believed the company knew or should have known about the potential risks the products posed.

Aaron Johnson, a 48-year-old former macadamia nut field manager, who was diagnosed with non-Hodgkin lymphoma in 2014, is looking to sue the agrochemical company next, after he says he got the disease from using its weed killers for more than 12 years.

S2S Insurance provides cannabis product liability insurance and insurance for the marijuana industry, paraphernalia industry and hemp insurance.Product liability law suits can be time consuming and expensive. In the case of Bayer and Monsanto the damages awarded were $289 million for a single plaintiff, with others waiting on deck to sue as well. As a cannabis related business owner depending on the size of your company and the severity of the damages caused, you typically would not see such a large damage award, but an award in the tens of thousands or even hundreds of thousands is very possible. Even the most successful businesses may have trouble carrying the financial burden of a large product liability damage award. The good news is that with the help of a S2S Insurance agent, the right policy will cover the damages and legal fees up to the policy limit. Keep in mind that each policy has a max amount that it will pay out for a claim so you should review your policy with not only your S2S Insurance agent, but also your legal counsel. Contact us for a product liability insurance quote today and protect your business.


Data Breach Issues Create Problems For Cannabis Business Owners

As a cannabis business owner you may ask yourself why data security is important and what’s the real risk? The reason data security is so important is directly tied to the risk of associated with a data breach, which is money. A data breach for even a cannabis company can have costly financial consequences. Data security is all about financial loss. Data is an asset that must be protected. Loss of clients/customers private information can lead to fines, lost sales, judgement, damages or more. Often the financial impact is not always immediately known depending on how soon the breach is discovered if it wasn’t prevented. s2s insurance, data breach, hacking, testing lab insurance, cannabis insurance, cannabis doctor insurance

For cannabis related businesses a data breach could have an even greater impact if a the business is considered a health care provider. If you are a cannabis dispensary or testing lab in a state where marijuana is only legal for medicinal use, those businesses may be under greater scrutiny and subject to greater regulations when it comes to a data breach. These business will have personal information such as home addresses and phone numbers, but also medical information. Patients’ medical history could be used to blackmail them if they don’t want their medical history publicized, making the information specifically valuable. Specific provisions of the HIPAA Act protect health care information from fraud and abuse, and when violated carry heavy penalties.

Providers continue to struggle with cyber-security, and phishing expeditions are a frequent culprit. They can result in a painful hit to a company’s bottom line and negative publicity exacerbated by lawsuits. Healthcare organizations spend more than $400 per record lost or stolen after a data breach, the highest of any industry reviewed in a recent analysis by IBM Security.

A study by Accenture and the American Medical Association found four out of five doctors have experienced a cybersecurity attack. The majority involved phishing, followed by computer viruses.

In a Mimecast and HIMSS Analytics survey, providers ranked email the No. 1 source of potential data breaches. More than 90% of respondents said email was critical to their organization, and eight in 10 said they use it to send personal health information, typically to other providers. s2s insurance, data breach, cannabis insurance, marijuana recommendations, dispensary insurance

Financial loss and regulatory concerns are key factors to protect against a data breach, there is also the issue of loss productivity. Employees will in most instances be required to deal with customer issues and concerns once the breach is made public. Data loss can also result in certain programs and applications not working properly or not working at all. Certain security features may be disabled and require specialists to update and re-secure the network. The reality is even the best data security systems are vulnerable. While it is very important to have a strong data security system in place, S2S Insurance strongly suggests maintaining a data breach insurance policy to mitigate the risk. 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. It is important to remember that policy limits do apply and to review your policy with a trained S2S Insurance agent and an attorney. Do not let hackers cost you hundreds of dollars per file due to not being prepared. Have a strong data security system in place and have the peace of mind with a data breach insurance policy.


Marijuana Directors and Officers Insurance by S2S Insurance

So you’ve made the leap into becoming a cannabis entrepreneur, you’ve put together a business plan, you have a location, you have your merchandise, and you’ve secured investors.  Next step is risk management. Everything previously mentioned took time and effort, but also puts you and your other marijuana directors and officers in the cross hairs of exposure for being sued. At S2S Insurance we specialize in this area of insurance and strongly suggest for our cannabis business owners to carry a D&O insurance policy. As an owner, director or officer in a management role, you and your officers will have to make decisions that impact your company and/or your investors. If those decisions impact someone down the line the wrong way, those in charge of making decisions become the target of litigation.

S2S Insurance provides D and O Insurance for your organization, contact us today.

S2S Insurance provides director and officer insurance for CEO’s and other officers of your organization.

Any business is susceptible to being sued by shareholders, customers, employees, or competitors. As your supply chain becomes more complex, the potential for law suits increase. Mix in the variables that come with marijuana’s legal status among states and the federal government and the situation only becomes more difficult to navigate. While individual states have legalized cannabis in some form or fashion, it is still a schedule 1 drug in the eyes of the DEA and the federal government. This status means that there are few standards set and ample opportunity for courts in every state to shape public policy around litigation outcomes.

An early Uber investor, Benchmark Capital, is suing former Uber CEO Travis Kalanick over claims he committed fraud in 2016, according to a lawsuit filed on Thursday in Delaware Chancery Court.

Uber has been in the spotlight after reports of pervasive gender discrimination and sexual harassment at the company. The ride-hailing giant is also being sued by Waymo, Google’s sister company, over claims it stole intellectual property to advance its autonomous-car development.

S2S Insurance provides D and O insurance for cannabis companies, please contact us today.

S2S D&O insurance protects managing officers from business related law suits.

Five of Uber’s major investors forced Kalanick to step down in late June. Benchmark was reportedly one of the loudest voices calling for his removal.

At S2S Insurance we analyze where the cannabis business owner is vulnerable across all aspects of their business. Marijuana directors and officers liability insurance protects the personal assets of directors, officers and their spouses in the event they are personally sued by employees, vendors, competitors, investors, customers or other parties for acts while managing a company. The coverage also includes legal fees, damage awards, settlements, and provides protection holding officers harmless for losses due to their position within the organization.  It is the responsibility of S2S Insurance to understand the risks associated with running a cannabis related business, and also combine that information with our knowledge of how insurance works best for our clients. As always, policy limits do apply and we always suggest reviewing your policy with one of our qualified specialists at S2S Insurance, and a qualified attorney.


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.


Cannabis Insurance Defending Cannabis Businesses From Professional Liability

In traditional industries with professionals such as accountants, lawyers, and doctors, there is an expectation of specific knowledge and professionalism. Businesses and families rely on their accountants to help them file taxes and set up businesses to minimize their tax liability while staying compliant with the rules and regulations set by the IRS. Clients depend on their lawyers to know specific areas of law and rely on their advice to make legal decisions that may impact the rest of their lives. Patients place their lives in doctors hands with diagnosis and medications, anticipating positive results to their various ailments. The cannabis industry has various professionals that are also relied upon for their knowledge and expertise and like all responsibilities that come with being a professional, when a mistake is made the consequences can be drastic. Cannabis businesses owners such as marijuana growers must protect themselves with a form of cannabis insurance, specifically professional liability insurance.

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There are multiple forms of cannabis insurance that can help a cannabis businesses owner manage risks, but for the various professionals in the industry such as growers and consultants, professional liability cannabis insurance is a valuable tool to mitigate risk. In Colorado a couple has been granted the right to sue a marijuana company for it’s use of pesticides on it’s marijuana plants. The company is now facing a possible class action law suit and unspecified damages that could potentially cost large amounts of money that few businesses can afford to lose. If the company in question is properly insured, they should be able to minimize their exposure in this instance, but it should be noted that there are policy limits to all policies, and not all occurrences or liabilities may be covered.

The lawsuit against LivWell Inc. by Brandan Flores and Brandie Larrabee seeks class-action status and alleges the company for years inappropriately used Eagle 20, a heavy-hitting pesticide with myclobutanil that kills a variety of pests endangering the plants.

“In a larger sense they’re saying the marijuana industry can’t go on unchecked and someone has to do something to stop these people from using Eagle 20 and other harmful pesticides,” said Steven Woodrow, their attorney.

The two claim damages for an unspecified amount of money they overspent to buy the marijuana they say should have sold for a lesser price because of the pesticide.

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LiveWell Inc. and the situation in Colorado is the exact reason cannabis business owners cannot ignore cannabis insurance. The cannabis industry is in it’s infancy and will face many challenges in the near future. S2S Insurance Specialists can help cannabis business owners evaluate potential risks and put together a plan that protects the business from all angles. Cannabis insurance is new in the sense that the end product is new to the world of insurance, but the business models, the guiding principles of risk management and underwriting are not new. S2S Insurance has experienced insurance professionals that can help business owners protect their investments and livelihoods. It is also important to remember that regardless of what type of cannabis insurance policy you have, coverage limits will apply.  You must read your policy with both your agent and your attorney to determine what your coverage consists of.


Dealing With Cannabis Industry Discrimination

It today’s society it is common to hear about discrimination in the work place. Discrimination comes in many different forms and impacts many different groups of people. Discrimination can come in the form of race, age, sexual discrimination, people with disabilities, and other forms. Cannabis industry discrimination is a concern for cannabis business owners as much as traditional business owners. While the novelty of the cannabis industry has protected it from long standing institutional practices of discrimination that keep industries such as the entertainment industry in the news, no industry is immune to issues of discrimination.

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Employees are entitled to effective workplace policies by which claims of harassment or discrimination may be properly addressed and resolved. To create a workplace environment free from harassment, discrimination and bias, employers should adopt a zero-tolerance policy against it. The 2017 Diversity in Cannabis Survey conducted by Frontier Data and Women Grow, shows that discrimination in the cannabis industry is a common issue that employees and employers are facing in real time.

When survey results are filtered to show only responses from minorities, the view that racial discrimination is a moderate or major industry issue rises from 45% to 65%, reflecting the fact that those who don’t belong to minority racial groups may be less familiar with the discrimination minorities experience in the sector and therefore are less likely to perceive it as a major issue.

Sexual harassment is a widespread issue in the industry, with nearly half (45%) reporting they’ve either witnessed it (27%) or have experienced it themselves (18%). An additional one-third reported that they knew someone who’d been sexually harassed in the industry.

When filtered to include responses only from women working in non-ownership or management positions (those working as lower-level staff and interns), the percentage of sexual harassment jumps to 30% and the percentage knowing someone who has experienced sexual harassment jumps to 49%.

While a zero tolerance policy regarding discrimination in the cannabis industry, or your specific business, is important, business owners should invest in additional layers of protection. Employer’s protection liability insurance protects the cannabis business owner from discrimination claims including age, race, disability, sexual discrimination, wrongful termination or some other type of discrimination. A claim for discrimination could include requests for information on company policy and work environment, requests for records, depositions, testifying in court, providing back pay, damage awards, fines, and legal fees. Even if an employee is unsuccessful with their claim, the process can be time consuming and costly to defend. An employer’s protection liability protects an employer when faced with these claims.

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While no policy can insure against time lost or other collateral damage caused by a discrimination claim, the right policy can reduce the damage by covering the financial loss if such a claim is filed. A business owner should always work closely with an experienced insurance agent when determining the right risk management strategy for their business. No matter what risk management strategy you choose, coverage limits will apply. Business owners should always read their policy with their agent and their attorney to ensure they know what is and is not covered in their specific policy.


Protecting Cannabis Cargo Shipments Protects Cannabis Revenue

The cannabis business is no different than any other industry in the United States when it comes to moving goods across the country. The cannabis industry will have to rely on shipping goods by truck, train or plane from one destination to the next. Cannabis businesses owners will need to think about how they will protect those cannabis cargo shipments. Stealing truck shipments is big business in the black market. Given the nature of cannabis and the ease of which the product can quickly become untraceable, thieves have been and will continue to look for ways to intercept cannabis cargo before the shipment reaches it’s destination.

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Whether cannabis businesses are shipping produce, electronics, automobiles, industrial materials or cannabis related products, business owners want to protect themselves from the risk of loss in transit. The good news is that cargo theft is on the decline, but the bad news is the value of what is being stolen is on the rise. What this means is that criminals looking to disrupt the supply chain are less worried about quantity and more concerned about the quality of what they steal. Criminals want to steal cargo that is hard to trace and easy to move and exchange for cash or other resources. Marijuana is hard to trace, holds a high value (which is why a business owner is in the cannabis industry) and can be moved and exchanged quickly.

An annual report compiled by SensiGuard’s Supply Chain Intelligence Center (SCIC) indicates that the number of recorded cargo thefts in the U.S. dropped to 649 in 2017, a 15% decline in volume from 2016 – roughly averaging out to 54 thefts per month in the U.S. or about two per day last year. However, the average value of cargo thefts increased slightly in 2017 – up 0.01% – compared to 2016, the group noted, with the U.S. still ranked “high” on the SCIC five-point risk scale, which ascends from “low” through “moderate,” “elevated,” “high” and finally “severe.”

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“While 2017 continued the downward trend in reported U.S. cargo thefts, this does not indicate a decline in risk, but rather that organized cargo thieves are honing in on shipments that they know can be fenced easily,” the group stressed in its report. “Coupled with the average loss value remaining steady, this points to thieves refining their methods to reduce chance of capture or the need to abandon the shipment due to law enforcement pursuit.”

Due to the Schedule 1 classification of marijuana, business owners may have concerns about their risk management options. It is important that owners work with experienced insurance companies and agents that can help review their options and make the right decision based on their model of operation. The type of cannabis cargo insurance that will work best for your company will depend on how involved you as a business owner are in the transportation of cannabis. It is also important to remember that there are other risks involved in transporting cargo including accidents, crashes, and acts of nature to name a few. It’s important that business owners are aware of coverage limits and review their policy with their agent and their attorney.


How A Data Breach Can Impact Your Cannabis Business

When we hear the term “data breach” we are trained to immediately check our online presence information to determine if we’ve been hacked. We hear the term frequently in the news about a massive data breach and we are reminded of our vulnerability in this new age of technology. A data breach typically involves an unauthorized or illegal viewing, access to, or copying of data by an individual or group. The purpose is to steal as much useful information as possible or publish that information in a public forum.

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A data breach can pose a major threat to a cannabis business

LabCorp is a one the largest medical diagnostic companies in the nation with the resources to have maximum data protection, yet they still may have been exposed. The danger with a company such as LabCorp experiencing a data breach is that their customers and patients’ medical information may have been exposed. Besides medical information it is possible that payment information and internal financial information about LabCorp itself has been seen, accessed and or stolen. LabCorp will have to deal with the exposure of patients private health information but also the reality that they could be vulnerable to further attacks aimed at stealing money or access to credit.

LabCorp, one of the nation’s largest medical diagnostics companies, is investigating a security breach that could have put health records of millions of patients at risk. The company, in a filing with the Securities and Exchange Commission, says it detected “suspicious activities” on its network over the weekend of July 14 and “immediately took certain systems offline as part of its comprehensive response to contain the activity.”

“This temporarily affected test processing and customer access to test results on or over the weekend,” the company said. “Work has been ongoing to restore full system functionality as quickly as possible, testing operations have substantially resumed today, and we anticipate that additional systems and functions will be restored through the next several days. Some customers of LabCorp Diagnostics may experience brief delays in receiving results as we complete that process.”

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Marijuana Prerolls

Some reading this may wonder how this pertains to the cannabis business, but this has everything to do with the cannabis industry. The cannabis industry is unique in the fact that it exists in both the medical world and the retail world. Some states have legalized marijuana for medicinal use only, others for recreation. Some cannabis businesses may have some form of medical information for patients if they are a medical marijuana provider. Other businesses may have less critical data but it is still dangerous in the wrong hands, such as names, addresses, phone numbers, and emails of customers which if published could put any number of people at risk if that information is exposed.

There is also the very real threat of identity theft and people stealing identities to gain access to medical marijuana. If your company stores this type of information on a computer or server, your company is legally liable for protecting this information from a data breach. Data breach insurance protects business owners from legal liability resulting from a data breach, whether the information is stored electronically or by some other means such as on paper.  As always it is important to remember that regardless of what type of insurance policy you have, coverage limits will apply. You must read your policy with both your agent and your attorney to determine what your coverage consists of.