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.

Workers Compensation Insurance For The Cannabis Industry

When it comes to employees getting injured on the job, most states require employers to carry workers compensation insurance. Typically the requirement for workers compensation is for businesses with a certain number of employees or more than the specified required number. Workers compensation policies pay for the medical costs and lost wages for employees that are injured while performing their job duties in an official work capacity. These policies pay damages regardless of who is at fault in the accident.marijuana insurance, cannabis recommendations, liability insurance for marijuana

As workers compensation insurance relates to employees using medical marijuana for pain management, each state varies on what they will and will not allow employers to reimburse or cover. In the state of Maine, the state’s Supreme Court decided that employers were not required to cover employees medical marijuana use, relying on the Schedule 1 status of the drug and it’s illegality. In New Jersey, the issue has not made it to the state’s high court, but a lower level court has stated that employers can pay for an employee’s use of medical marijuana while receiving worker’s compensation. Due to the nature of the cannabis business, if a cannabis employee was injured on the job, a business owner would need to know if medical marijuana is a treatment option that can be paid for through workers compensation.

A judge last month ordered Freehold Township to reimburse Steven McNeary for the marijuana he uses to treat his muscular spasticity, a decision that could set precedent in New Jersey, especially as more people are now able to qualify for the medical marijuana program. Freehold Township had argued that since marijuana, even for medicinal purposes, is illegal on the federal level, the township would be breaking the law by essentially providing the marijuana for McNeary.

While this may be the first time a workers’ compensation judge has ordered a public employer to pay for medical marijuana, private employers in New Jersey have already been compelled to do so. Now that New Jersey’s medical marijuana has been expanded to include conditions such as chronic pain, more workers may be able to qualify for the program and have it paid through workers’ compensation.cannabis insurance, who insures the cannabis industry, insurance for cannabis

The lack of consistency between states on issues like workers compensation insurance and cannabis is why cannabis business owners should be working with experienced insurance companies for their risk management needs. While employers are not required to cover medical marijuana in some states, it is important to remember the benefits of cannabis worker’s compensation insurance for cannabis employees. Employers can be exposed to a number of different risks if they do not have proper insurance coverage. In some states a business may receive a fine for each day workers compensation coverage is not maintained. Some states may prevent businesses from operating until the owner provides proof of coverage. Owners may be held personally liable for paying employees medical expenses and lost wages. Employers without proper coverage not only risk damaging financial losses for their business, but in some instances personal financial losses as well. It is absolutely critical that business owners work with an insurance company and agent that can help them navigate the various risks and threats to a business and put a plan in place to protect the owner’s investment.

 

read more at nj.com

The STATES Act Has the Support of President Trump

The election of President Donald Trump brought a great deal of trepidation to the world of cannabis. There was not a clear message at first from the Trump administration on its stance towards the legalization of cannabis. The President himself stated he would not have his administration crack down on cannabis businesses during the 2016 campaign while in Colorado. President Trump then tasked Jeff Sessions with being the Attorney General of the United States shortly after taking office which confused many people since Sessions is vehemently opposed to the legalization of cannabis. In early 2018 Jeff Session rolled back the Cole Memo which had advised U.S. attorneys around the country to not pursue state legal cannabis businesses or consumers. The result was a slow down in the growth of the cannabis industry as investors pulled back their interests in marijuana companies in fear of a justice department crackdown on the industry.

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Sen. Cory Gardner

Senator Cory Gardner of Colorado, one of the first adult-use states, became particularly infuriated by the attorney general rescinding the Cole Memo and felt the President was going back on his promises while on the campaign trail to let states decide. As a member of the committee that appoints justice department nominees, Senator Gardner vowed and did block all nominations making life very difficult for Jeff Sessions. After a private call with the President, Senator Gardner pulled his blockade telling reporters that he had the President’s word that he would not allow the attorney general to go after state legal cannabis business. Soon after the call Senator Gardner introduced The STATES Act, a bill co-sponsored by Massachusetts Senator Elizabeth Warren, that would remove cannabis as a Schedule 1 substance and resolve all banking problems marijuana companies are facing currently, if it passes. President Trump told reporters that he knew what Senator Gardner was doing and that he would likely back the bill providing his tentative support. Of all the bills introduced in Congress that would end the prohibition on cannabis, The STATES Act likely has the most promise since it has bi-partisan sponsorship.

Liability insurance for marijuana, Dispensary insurance, cannabis insurance, the STATES ActThe President has a lot to gain politically speaking by backing marijuana legalization. A record high 64% of Americans now support legalizing marijuana at the federal level, including 51% of Republicans, according to a recent Gallup poll. Even in deep-red Oklahoma, voters recently overwhelmingly approved a medical marijuana law through a ballot initiative that was opposed by the entire state GOP establishment. The medical marijuana program, if implemented as is, would be the most permissive in the country. North Dakota, which also votes republican, has collected enough votes to have a referendum question added to the ballot this November that would create an adult-use market if passed.

No matter what direction the current administration moves in, it is critical that cannabis business owners continue to monitor and stay up-to-date on cannabis legislation. The landscape is consistently changing, and if and when marijuana is removed from a Schedule 1 designation the federal government flood gates of regulation will open. Multiple federal agencies will have new requirements such as testing and liability coverage. Marijuana business owners should have a relationship with a knowledgeable insurance provider to help identify and mitigate risks.

Cannabis Testing is Not An Exact Science

As the interest in legal cannabis grows, government agencies and consumers alike will want to know what they are consuming. Cannabis testing of products is becoming a standard in all states that legalize medicinal use or recreational use marijuana. The standards for this testing vary state to state. In some states cannabis testing is carried out similarly to that of pharmaceuticals. Some states are testing for purity, contaminants, and potency, while others are testing for only 2 or 1 of those elements.

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Cannabis Testing varies from state to state

The cannabis industry has looked to the federal level for guidance on cannabis testing, but have received no help from federal agencies. Cannabis carries a schedule I designation under the Controlled Substances Act, designated by the DEA thus making it an illegal drug. Because of the illegality of marijuana federal agencies refuse to issue any standards regarding cannabis testing or any other form of regulation dealing with the drug. The federal government has taken a hard stance that even with states legalizing both medical and recreations use of the plant, federally these agencies see the drugs as an illegal substance. The federal government’s stance on the issue leaves states to individual mandate testing as they see appropriate for their states and consumers.

State regulators have had no guidance from the federal agencies that usually set health and safety standards for agriculture, food and medicine because the federal government considers marijuana to be illegal. They have been hampered by the fact that there’s little research on how marijuana tainted with potential toxins affects humans, partly because the federal government funds limited marijuana research. And they’ve also had to adjust testing regulations to reflect the costs and amount of tests fledgling legal marijuana markets can handle.

In Oregon, for instance, initial rules rolled out in October 2016 for marijuana testing and laboratory accreditation contributed to backlogs at laboratories and shortages of product on dispensary shelves. Regulators, seeking to ease the pressure on the market, issued new rules that December that reduced the number of times a harvest, or a batch of chocolates or candies, would have to be tested.

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Cannabis testing helps to protect the cannabis business owner

As insurance specialists, we at S2S Insurance want to provide cannabis business owners with the necessary information to make wise decisions that will impact the success of their business. We would tell all businesses owners to become aware of the requirements in their particular state regarding testing. Understanding the regulations in your state early in the business planning process can help a business owner begin to estimate costs. Laboratory testing of any kind is never inexpensive and cannabis testing is no different. Cannabis business owners should not overlook this requirement if it is a state mandate. Business owners should also be aware of the risks that are associated with cannabis testing and protect themselves. While cannabis testing is meant to protect the end consumer mistakes are made. Testing is complicated and requires the upmost attention to detail which creates room for error. The margin for error increases as the requirements become more stringent. Business owners should be protect themselves with product liability insurance that can help mitigate risk in case of issues of recalls, production stoppages, and law suits.

read more at post-gazette.com

How Cannabis Businesses Deal With Cash Concerns

A cannabis business owner has many concerns when starting a business, such as hiring employees, quality of products, and marketing to name a few.  The one aspect that must be considered early on is how cannabis businesses deal with cash.  Not just making money but how will customers pay for the product, where will money be stored, how will it be transported, what bank will the business use? These are questions that traditional businesses have to answer as well, but typically for those businesses it’s as simple as filling at a form at the local bank or credit union. For a cannabis related entity processing transactions and money is far from straight forward. Most banks and credit unions which are regulated by federal agencies refuse to accept money from cannabis related businesses. The banking industry’s refusal to do business with the cannabis industry requires cannabis business owners to work in a world of cash only transactions. Cannabis and cash are for the foreseeable future tied together at the hip forcing many to ask the question how do cannabis businesses deal with cash.

marijuana insurance, marijuana business, medical marijuana, liability insurance for marijuanaFor many cannabis businesses being forced to work only with cash, there are logistical problems and extreme safety concerns.  The logistics begin with basic payment methods.  Business owners can only accept cash, meaning debit and credit cards can’t be used, customers can’t use checks, therefore the only form of payment accepted in most cannabis businesses is cash. A business may be able to get away with claiming to be a “retail sales” company as a designation on a bank form, but eventually banks and credit unions will question the large number and amounts of cash transactions and may close the account. Cannabis business owners are faced with the reality of housing substantial sums of cash onsite, or having to transport tens of thousands to hundreds of thousands of dollars each day. Many business owners are forced to purchase large vaults and safes to store cash onsite, and pay for armored vehicle services to move large sums of cash to other facilities for storage. Being forced to manage these large sums of cash constantly creates additional expenses, but also creates additional risk.

Without a banking account, some cannabis businesses have to fund everything from payroll to taxes in cash. Those companies also cannot accept debit or credit card payments, apply for mortgages or even get small-business loans — all matters that are regulated by the federal government.

It also leaves the businesses with stacks of cash piling up in their offices — and criminals have taken notice.

Last spring, police in Phoenix estimated that six area medical marijuana dispensaries were robbed in a two-month span, according to local media reports. The year before, June was a particularly brutal month with several robberies or attempted robberies in Denver, Los Angeles, Detroit and San Diego.

The violence culminated with the death of an Aurora, Colorado, dispensary security guard, who was shot during a robbery on June 18, 2016. In Riverside, California, the next week, two dispensary workers were wounded in separate holdups less than 48 hours apart.

Cannabis Businesses deal with cash only operations

Cannabis businesses dealing in cash is not a secret. Criminals are aware that these different cannabis businesses deal in cash and very large amounts of cash on a regular basis.  There are countless examples of robberies and robbery attempts on cannabis businesses for this very reason. The reality is, if you are starting a cannabis business, you will have to deal with large amounts of cash and the risks associated with having large amounts of cash on hand. While each state has it’s own rules regarding marijuana and it’s legality and how businesses can operate in that state, cannabis is currently illegal on the federal level. As long as cannabis remains illegal on the federal level, the connection between legal marijuana and cash will remain closely affiliated. Business owners will have to protect their businesses from the various risks such as vandalism and theft by working with S2S Insurance Specialists for not only your property insurance needs, but all your cannabis insurance needs.

read more at washingtontimes.com

Cannabis Worker’s Compensation Insurance, Why It’s Needed

Cannabis business owners may debate the need for cannabis worker’s compensation insurance for cannabis employees, but in reality there should be no debate. Business owners should view cannabis workers compensation as a protection and not another expense. While in some states, smaller employers (generally those with 1-3 employees) may opt out of the mandatory coverage, many employers elect to opt into worker’s compensation coverage to protect their investments. Cannabis employers’ reasons for opting in include protection from being sued for causing injury, no fault coverage, and coverage for the actual business owner as well in case of injury while working.

The good news is cannabis employers and employees have an option to protect themselves if on the job accidents occur. The bad news is that there is ambiguity about medical marijuana and cannabis workers compensation coverage.  If a cannabis employee is injured on the job, it is logical to think that the employee may want to use medical marijuana to help manage pain while recovering from their injury. Due to the Schedule I status of marijuana on the federal level, and ambiguity among state laws regarding the issue, worker’s compensation payments may not cover the cost of medicinal use cannabis for injured employees. In a case out of Maine, an employee sued for reimbursements for money he spent out of pocket for medical marijuana. The court in Maine decided that employer’s do not have to pay for or reimburse employees for medical marijuana, and that doing so would be a crime under federal law.

But Twin Rivers Paper Co. and its insurer appealed the ruling, arguing that paying for pot use, even for medical purposes, could expose the companies to prosecution since marijuana still is illegal at the federal level… With medical marijuana legal in Washington, D.C. and 29 states, insurers across the country have been confronted with the same dilemma. Uneven state laws on reimbursement further complicate the issue… Twin Rivers attorney Anne-Marie Storey said paying for medical marijuana puts the company in violation of federal law. The company contends that Maine’s medical marijuana law does not explicitly require an insurer to cover the cost of medical marijuana.

While employers are not required to cover medical marijuana in some states, and the law is not clear in others, it is important to remember the benefits of cannabis worker’s compensation insurance. Without worker’s compensation for cannabis employees, employers can be exposed to a number of risks. In some states a business may receive a fine for each day worker’s compensation coverage is not maintained. Some states may prevent businesses from operating until the owner provides proof of coverage. Owners may be held personally liable for paying employees medical expenses and lost wages. Even if your cannabis business is small with a few employees, all it takes is one law suit for damages to derail the entire operation. Employers without proper coverage not only risk damaging financial losses for their business, but in some instances personal financial losses as well. Cannabis worker’s compensation for employees is only one of a number of tools employers can use to protect their business.  It is absolutely critical that business owners work with an insurance company and agent that can help them navigate the various risks and threats to a business and put a plan in place to protect the owner’s investment.

read more at thecannabist.co

Product Liability For Cannabis Products Explained

Product liability for cannabis is a form of risk mitigation cannabis business owners should all consider. Each state has varying laws regarding product liability, but it typically holds manufacturers and retailers alike accountable for issues that arise. Typically these cases cite strict liability, negligence, misrepresentation of theories, and/or express or implied warranties. The purpose of this level of inclusion is to place pressure on retailers to ensure manufacturers are using the highest quality products. Product liability for cannabis is most relevant for marijuana infused products such as edibles or beverages where illness post ingestion is possible. Cannabis business owners such as dispensaries should keep in mind that product liability cases are some of the most expensive cases for a business to face.

One of the first steps in protecting against product liability is adequate documentation. Retailers should look to label their products with detailed information very similar to the way pharmaceutical prescriptions are labeled. Labels should include information such as content description, potency, issue date, instructions for use and storage and expiration an date. The label should also include the common sense warnings such as “avoid eye contact,” “keep away from children” and “do not use while operating a vehicle”.

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It may be a surprise that it’s not just the growers and manufacturers who are held liable for defective products – retailers are also at risk. If a consumer purchases a defective product from a retailer and becomes ill, that dispensary owner can be held liable, even if there was no prior knowledge of defects in the product. The rationale behind imposing liability on dispensary owners is that it will pressure them to vet manufacturers they do business with more carefully and only work with businesses that have a proven track record of making high quality, safe products. While states tend to favor those who had no part in the manufacturing of a defective product, there is still risk of liability.

Cannabis business owners should implement the product life cycle concept strategy to help evaluate product liability. The product life cycle applies biological knowledge to production processes. The product life cycle focuses on introduction, growth, maturity and decline phases. By treating each part of the product’s life as an individual stage (pre-production, production, and post production), businesses can more easily identify sources of liability and address these concerns in their specific stage of the process.

Another area where cannabis business owners can help themselves is product testing. Retailers should be using manufacturers that use third party testing for all batches. Testing should be checking for quality and verifying that the product is free of contaminants such as molds or pesticides. After testing, small samples of tested batches should be available in case a controlled sample is requested at any point. Coupled with testing, product tracking should also be used in order to easily identify a specific lot in case of a product recall. As a cannabis insurance company we look to provide the cannabis industry with the necessary information to mitigate risk and help your cannabis business succeed.

read more at cannabis.net

Quality Employees, Cannabis Insurance Protects Cannabis Businesses

One of the keys to success for any business is who you hire. That premise is no different for a cannabis business. A cannabis dispensary’s front lines are the budtenders hired to handle the day-to-day operations of the dispensary. Knowledge and customer service oriented staff can be the difference between a successful dispensary and a failed cannabis business. Quality employees matched with cannabis insurance are keys to protecting your investment.

The cannabis industry is a competitive field with many businesses offering similar products, quality customer service helps to build a reputation. Budtenders help and assist different types of customers each day and are responsible for providing an experience the customer would like to replicate. A happy customer will return and use word of mouth to organically help your business grow. Hiring staff with customer service experience is critical in the cannabis industry.

Cannabis business owners must also be aware of federal, state and local laws, and employees are not exempt. A staff that is trustworthy and knowledgeable on various compliance issues is crucial to the success of any cannabis business. Dispensary owners should provide continuing education to employees, to make sure they have the necessary information to help the owner stay in compliance.

Budtender, dispensary insurance, insurance for cannabisThe budtender often provides one of the first impressions a patient or consumer gets about a cannabis dispensary, and how he or she treats visitors is crucial to the success of the business.  Cannabis dispensary budtenders are oftentimes a valuable resource for medical marijuana patients and recreational consumers who are looking to them for guidance on which products to try.

A marijuana dispensary is a retail business, in order for that business to succeed, employees must be able to sell. A good employee knows how to read a potential customer and sell that customer on filling a particular need. Cannabis business employees need to know how to utilize proper sales techniques, make proper recommendations, and up sell customers. The idea of selling should not be taboo to cannabis dispensary employees. Good salesmanship will make your company profitable sooner.

With owning a cannabis dispensary and working in the cannabis industry, there are multiple things that can go wrong during the course of a day. As a cannabis insurance agency, we take as many of these risks into consideration as possible. Whether it’s taking steps to improve security, prevent theft, avoid fire hazards, practicing safe techniques when working with product or properly checking identification when someone is making a purchase, safety in the workplace must be on the forefront of the employee’s mind. An option for cannabis owners is to look for certified staff, employees who are certified have gone through safety and security training, which may be an invaluable resource to your cannabis business. As a business owner, take the time to think about who you are hiring and the value that employee could bring to your cannabis business. Marijuana dispensary staff need to be dependable, knowledgeable, and safety oriented.  Quality budtenders can make or break your marijuana dispensary. As a cannabis insurance company we look to provide the cannabis industry with the necessary information to mitigate risk and help your cannabis business succeed.

read more at leafly.com

State Regulations Impact On Cannabis Businesses

As a cannabis business owner, awareness of the risks associated with the industry is absolutely imperative. The most looming of those risks is the federal government and the federal agencies tasked with enforcing federal law. US Federal law considers cannabis a Schedule 1 controlled substance. Agencies like the DEA, FBI, or even the ATF could come kicking down your door at anytime depending on marching orders from Washington D.C.. A cannabis business owner assumes certain risks when choosing to do work in the cannabis industry and must understand state regulations as well.

Destroyed Cannabis, cannabis crop insurance, who insures the cannabis industry, cannabis insuranceFederal enforcement is not the only risk cannabis owners need to be aware of. Each state has their own regulatory practices that could have a negative impact on a cannabis business as well. Many states have only recently legalized some form of marijuana use and or sale. States are in the process of developing regulations for an industry that was previously underground with no rules or regulations. California for instance instituted business requirements that were set to take effect on July 1, 2018.  Those requirements included the introduction of lab testing, packaging, labeling, and THC limits in products offered for adult-use. Cannabis business owners were given six months to transition to the new rules, if they were not able to comply, they would be responsible for destroying any product that did not meet the new rules and document the product destruction.

On Sunday, the stringent new “seed to sale” tracking standards for California’s cannabis market went into effect. Overnight, thousands of pounds of cannabis products worth hundreds of millions of dollars suddenly became noncompliant. Now, dispensaries are in the process of destroying them, in an event the industry has dubbed the “Marijuanapocalypse of 2018”… Drayton estimates Los Angeles dumped tens of thousands of pounds of product, alone.

In anticipation of this pending doom’s day scenario business owners needed to have a plan in place. California gave owners a six month window to sell what they had without the restrictions of the new rules. Business owners would have been smart to offer the non-compliant products at deep discounts as frequently as possible to help mitigate the loss. This is a rare particular instance where the business owners knew what the catastrophic event was going to be, and knew when it was coming. That sort of information is rare in the world of risk mitigation but when you have it, use it.  There is no way to accurately track what was lost in California this past week, but estimates are significantly high. There is no insurance product available at this time to protect a cannabis business owner from state mandated destruction of inventory, but it is important that business owners are aware of the looming risks of regulation, and take any necessary precautions to protect themselves in the face of enforcement.

Unfortunately there is no cannabis insurance product to protect against the general liability associated with state regulatory mandates. The cannabis industry is being presented with risks that are not common in traditional business sectors, but must still be accounted for. Like traditional business models, insuring your business against predictable risks based off past occurrences is the prudent move for any good business owner.

read more at hightimes.com

Understanding the Regulatory Risks Associated with Owning a Cannabis Business

As a cannabis business owner, looking over your shoulder may have become an habit. It is the same habit of anyone that participates in the illicit market, however you entered into the cannabis industry because your state has legalized cannabis. The truth is though, that regardless of whether your state has legalized a medical marijuana program or even possibly an adult-use market, cannabis is still illegal. You are not looking over your shoulder to see if local authorities are coming but instead if agencies like the DEA, FBI or in the instance of a brewery in San Francisco, whether the Alcohol and Tobacco Tax and Trade Bureau has shown up.

Black Hammer Brewing, cannabis insurance, who insures the cannabis industry, insurance for cannabisBlack Hammer Brewing out of San Francisco came up with the very smart idea of brewing a beer with cannabidiol or CBD, a cannabinoid found in both the marijuana flower and in hemp. Black Hammer was using hemp derived CBD. It is a non-psychoactive biological compound that is believed to be the main medicinal compound found in the Cannabis sativa plant. It works as an anti-inflammatory as well as having some other medicinal properties. CBD products are offered around the country in many wholesale stores like Lucky Brands. Adult-use cannabis is even legal in California, but that did not stop the federal agency from stepping in and forcing Black Hammer Brewing to stop all production of their CBD beer and offering it for sale to their customers.

Forcing the brewery to stop production of the CBD beer did not even have to do with the Schedule 1 status of cannabis, which is what makes cannabis as illegal of a controlled substance as there is here in the United States. It instead had to do with the fact that Black Hammer had not applied to add either CBD or some of the terpenes they were using in their beer for approval with the Alcohol and Tobacco Tax and Trade Bureau. Since the prohibition of cannabis has been in place here in the U.S. for over 80 years, cannabis and the substances that can be extracted from it are simply not accounted for by regulatory bodies. The owner of Black Hammer Brewing, Jim Furman, believes though that the future of one of his top selling beers depends very much on the federal legalization of hemp.

“We believe that future approval of our formula may be dependent on hemp reclassification by the federal government/DEA,” he wrote in an email. “Our guests love the CBD beers, and we’re pretty sad that we have to stop producing them,” he says. Of the eight CBD beers he has created, Furman considers Hippie Hill, an imperial IPA, to be his greatest success. Brewed with Tahoe OG terpenes, “it’s unmistakable. So fresh,” he says. “It’s got the most dialed-in cannabis flavor profile.”

There is no cannabis insurance that covers the sort of general liability associated with the illegal status of cannabis or the regulatory limitations caused by the extended prohibition of cannabis. However we are interested in spreading awareness on all of the risks associated with owning a cannabis business or incorporating a cannabis product into your inventory. In the cannabis industry, you must account for certain risks that are not common in traditional sectors.

read more at sfchronicle.com

Understanding Insurance for Cannabis Businesses with S2S Insurance Specialists

Source: The National Marijuana News

Eric Rahn of S2S Explains How Cannabis Companies Can Mitigate Their Risk Despite Schedule 1 Status

TNMNews had the opportunity to meet with and interview Eric Rahn of S2S Insurance Specialists at the Phoenix Park Hotel for the NCIA Lobby Days event in Washington D.C.. Mr. Rahn is a member of the NCIA and joined the cannabis industry three years ago identifying a great need for risk mitigation within the sector. We were fortunate that we were able to interview Mr. Rahn first during the event as his obvious experience and knowledge set an excellent tone for the event and let us know what to expect from the professionals we would be speaking with.

What is only growing faster than the Cannabis Industry? If you said risk, you are spot on. Eric Rahn started his career in the casino gaming industry becoming very familiar with working within a regulated industries. Seeing the rapid growth of the cannabis sector he decided that their was a void of qualified international insurance brokers in this emerging sector. After identifying that many cannabis companies, both Public and Private associated within the cannabis industry were facing unmitigated in securing the proper insurance risk due to the Schedule 1 status of cannabis. He not only felt he had the knowledge and experience to help, but also that the movement needed all the help it could get to push the legalization movement forward. He then made the transition into the cannabis industry by establishing S2S Insurance Specialists and joining the NCIA.

As you listen to the interview, you will hear that he has adopted the seed-to-sale concept of tracking cannabis businesses from the planting of the seed to the ultimate sale of the product. By examining the industry in this manner he was able to identify the unique risks associated with each business. Hence the name of his company, S2S Insurance Specialists. He has identified the four major areas of risk the cannabis industry faces as banking, the IRS tax code 280E, interstate transportation and of course a lack of liability insurance. His number one suggestion is that a cannabis company makes sure it is speaking with a certified insurance broker that is familiar with the cannabis industry and its unique risks, as many brokers are not yet educated on this particular subject matter.

Mr. Rahn suggest any company raising money, bringing in outside investors or trading on a stock exchange acquire Directors and Officers Liability. Also any company selling cannabis products should consider Product Liability Insurance. There may be a lot of confusion surrounding how cannabis business owners can mitigate their risks due to the Schedule 1 status of cannabis, however solutions are out there. Cannabis entrepreneurs simply need to make well informed decisions.

We want to thank Eric Rahn for taking the time with us to address questions and provide this much needed information concerning the liability of owning a business in the cannabis sector. If you would care to reach out to Mr. Rahn and S2S Insurance Specialists, please go to S2SInsure.com or you can reach them at their various offices listed below.

Boca Raton (954) 790-6604
Coconut Grove (305)-442-1500
Denver (720)-726-6147