Cannabis Liability Insurance is a must for any business operating in the marijuana space. Marijuana Liability Insurance provides protection against damages resulting from negligence caused by your business products or services. It does not matter if you are a marijuana dispensary, cannabis cultivator, marijuana doctor or any other cannabis support business. Cannabis Liability Insurance pays for damages and legal expenses if you are sued up to your policy limits. Marijuana Liability Insurance pays for medical expenses of others who are harmed by your business.  Negligence and mishandling in quality control of your cannabis grow and marijuana products can result in many issues like mold, mildew, and bacterial exposure. Defective marijuana paraphernalia is also a risk that can cause harm to your customers and to your business.

Marijuana Delivery Robberies Becoming Commonplace

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

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

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

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

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

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

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

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

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

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

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

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

Read more at Kron4.com

Landlords Need The Right Insurance Before Leasing to Cannabis Grows

All sorts of insurance is necessary for cannabis grows, but landlords leasing out to a marijuana grow facility also need to consider whether they have the right sort of marijuana insurance coverage before signing contracts. Due to the illegal status of marijuana federally, being involved in a business that touches the actual plant violates many contracts.

There is a lot to consider when accepting cannabis grows as tenants. Liabilities from the fire hazards involved with all of the lighting and energy used is a very real risk. If the cannabis grows are also extracting concentrates like cannabis oils, a lot of volatile and heavy equipment is often used.

understanding the financial risks of having cananbis grows as tenants

Typically, a landlord has already entered into many business relationships and documents pertaining to its property, years before contemplating leasing to a cannabis facility. The landlord has likely executed financing and insurance documents, which may be jeopardized by a cannabis lease. As discussed below, a landlord may inadvertently breach provisions in those documents by executing a lease for a cannabis facility.

The loan documents were probably executed well before it was ever envisioned that marijuana (whether medicinal or recreational) would be legal under various states’ laws. Those documents may very well contain a provision noting that the landlord/borrower will not use the property in connection with any illegal activity. As the cultivation and use of marijuana are illegal under Federal law, the mortgagee has an argument that leasing to a cannabis facility automatically breaches the loan documents.

Another possible concern relates to insurance policies. The landlord will generally hold various types of insurance policies related to property damage and liability. Those policies very likely have language excluding or limiting coverage for illegal or non-permitted activities. Therefore, those policies should be thoroughly reviewed and modified through endorsement to ensure full and adequate coverage.

If you are considering taking on cannabis grows as tenants, reach out to S2S Insurance. Eric Rahn and David Rahn stand by to address any questions and make you aware of your alternatives as a landlord to a marijuana grow.

Read more at The National Law Review

American Banks Missing Out On Legal Cannabis In Canada

S2S Insurance, cannabis insurance, contact Eric Rahn today, marijuana liability insurance, cannabis bankingThere are articles and news reports across the internet that recognize the money making potential in the legal cannabis industry. In the US, in states that have legalized marijuana in some form, people have invested heavily in the industry banking on big returns. People working in the trenches of the industry are starting to see early returns on their investments and they have the cash to prove it. While it is good to be rolling in dough, it is not ideal, and leads to some serious problems.

Most banks, large and small are not willing to extend their services to cannabis related businesses because of the plants status with the US government. Cannabis is listed as a Schedule 1 controlled substance in the Controlled Substance Act. As long as this federal law lists the drug as a Schedule 1 controlled substance, the financial industry will face significant challenges all the way from banking to merchant services by risking running afoul of federal law if they work with weed related businesses. The problem is not limited to the United States, it is impacting Canada as the entire country has legalized the use and sale of the drug.

Even though Canada legalized recreational marijuana and opened the door to a flurry of business activity, big banks in the United States and Canada are keeping the industry at arm’s length because of pot’s muddy legal picture in the United States.

Cannabis, while legal for recreational use in nine US states, and Washington D.C., remains illegal under US federal law. American banks have largely stayed away from providing services to the industry because federal regulations prohibit lenders from working with any business that deals in illegal drugs. Lenders could face money laundering charges in the United States if they do.

But banks could be missing out on a bonanza. The marijuana industry is expected to grow substantially in the next five years, with sales in the United States expected to hit $23.4 billion by 2022, according to cannabis market research group Arcview. Canadian sales are expected to hit $5.5 billion.

cannabis insurance specialists, s2s insurance specialists, legal cannabis, dispensary insurance, marijuana insuranceStill, most of the largest banks remain on the sidelines for now — even in Canada, where banks have to worry about potential compliance issues abroad. The American Bankers Association, the US industry’s powerful lobby, has said it wants Congress to resolve the conflict between federal and state laws so banks aren’t stuck in the middle, though it doesn’t have a position on legalization itself. Right now, banks that do decide to take a chance and quietly work with marijuana businesses are expected to file suspicious activity reports for every transaction related to those accounts — a huge and potentially expensive logistical headache. TD Bank (TD), the Royal Bank of Canada and Bank of Montreal (BMO), all of which have an international presence, declined to comment for this story.

As long as cannabis is considered a Schedule 1 controlled substance there will be an inherent risk to working in the cannabis industry. Not only are there legal risks, but because normal financial services are not available, you’ll  be dealing in cash which posses it’s own set of problems. Your business could be targeted for theft and robbery, which may come with property damage and more. If you are considering or already involved in a cannabis related business, you need a risk management strategy. Reach out to S2S Insurance Specialists and talk with Eric Rahn about your business and risk management strategies.

read more at cnn.com

The SEC May Find Your Marijuana Company Negligent in Cyber Fraud Cases

The enthusiasm towards the marijuana industry is palpable. The cannabis space is growing at a remarkable pace and both voters and legislators are going through the slow process of adapting laws to make room for the industry in the mainstream. However, it is easy for a marijuana company to get lost in the enthusiasm and lose sight of the bigger picture. The reintroduction of cannabis into the mainstream at this time, an era where technology is advancing at a speed most people are challenged to keep up with, presents risks any cannabis entrepreneur should stay current with on a consistent basis. These are the sorts of risks that only the proper marijuana insurance policies may be able to cover. Many companies may feel they have solved their cyber security problems by having anti-virus software throughout their network of company computers. But, many cyber attacks have little to do with the vulnerabilities present in a computer, but instead with the users of the computers.

SEC cyber security report, Marijuana company, marijuana data breach insurance, s2s insurance, eric rahn, marijuana insuranceRecently, the SEC issued a warning to mainstream publicly traded companies that they will soon have little tolerance for negligence in maintaining cyber security. While the advancement of technology is swift, companies have now had decades to become accustomed to electronic financial transactions and the criminal efforts to fool companies into making deposits into fraudulent accounts. Sections 13(b)(2)(B)(i) and (iii) of the Securities Exchange Act of 1934 (“Exchange Act”) requires that companies “devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization,” and that “(iii) access to assets is permitted only in accordance with management’s general or specific authorization.”

marijuana company, cannabis email fraud, marijuana cyber security insurance, eric rahn, s2s insurance, who insures marijuana companies, cannabis insurance specialistsIn the SEC report, none of the companies referenced, which lost nearly $100 million in total to cyber fraud, were found to be guilty of negligence. However, the report is a clear warning by the SEC to these companies and others, that anything but the strictest protocol for tracking transactions will be sufficient for publicly traded companies moving forward in order to protect investors. Hardly any of the funds stolen from these companies were recovered. To have a reparation filed against a company by the SEC for negligence in accounting controls on top of losing millions of dollars would scare shareholders away. The incidents referenced in the report involved the simple use of email. In some cases, an email address was created that looked like an official request for payment from an executive at a vendor. On the surface the email may have looked official, but employees working in processing plainly rushed through their tasks without reading emails thoroughly, or they would have likely identified discrepancies. The other cases involved hacking into company email accounts and manipulating financial ledgers. The criminals blended future transactions into the their look-alike vendor accounts with legitimate future transactions. The SEC’s point should be well taken. The stolen funds were ultimately due to the fact that the companies were not following their own sets of checks and balances and failed to identify the scams, when a diligent eye would have caught them.

marijuana company, s2s insurance, david rahn, cyber security insurance, cannabis insurance specialistsNow, if we take a look at the cannabis industry, the vulnerabilities to these sorts of attacks seem obvious. Cannabis companies have much more to track on their own due to the federal Schedule 1 status of marijuana. A marijuana business does not have the benefit of bank record keeping to track transactions since most banks refuse to accept the funds of a cannabis company in fear of violating anti-money laundering laws. Granted, cyber attacks like the ones identified in the SEC report rely upon electronic transactions, therefore a cash business would not be the target of this specific sort of cyber crime. However, as long as a criminal can isolate a flaw in a company’s tracking of financial transactions, they will see an opportunity to steal. Should the federal government look to legalize cannabis, and banks do start accepting the funds of the marijuana industry, then cannabis companies may be the biggest target of all. Phases of transition are where mistakes are most likely to occur, and hackers know it.

Tracking products all the way from seed to sale is not only happening in the cannabis industry. With the creation of blockchains that are commonly associated with cryptocurrency, comes a means to create verifiable ledgers for all sorts of transactions that are not centralized and therefore are not as easy to hack. So, if you want to know that you are eating a tomato grown on a certain farm in the United States, the tracking system can confirm where the tomato was grown and where the seed came from. To do this, a strict log of all transactions must be kept and quickly verified by third parties. Any discrepancy in that log throws up red flags and any fraudulent transactions can be rooted out quickly. It is this sort of organized tracking that is the way of the future and intended to eliminate these very sorts of fraudulent cyber attacks. While the advancement of technology provides new and different opportunities to steal, it also provides solutions.

marijuana company, S2S Insurance, David Rahn, blockchain technology, seed to sale, cannabis insurance specialists

The unfortunate incidents cited by the SEC in their report shows that human involvement is still very necessary when it comes to accounting and logging transactions. It is necessary for all protocol to be be followed exactly on a consistent basis in order to prevent these sorts of breaches that can result in the loss of millions of dollars. Computers are nothing without people still, which means that human error will continue to be a factor. However, cyber security or data breach insurance for a marijuana company can counter those financial losses. It is up to the pioneers of the cannabis industry to set the standard, once marijuana goes completely mainstream, by recognizing cyber threats and continuously staying updated on new threats. Things are happening fast, and should marijuana become rescheduled or even descheduled, then a multi-billion dollar industry will suddenly be thrust upon the banking sector. Clever criminals will identify this transition phase as a time when sloppy accounting and other slip ups are likely to happen leaving cannabis companies vulnerable to cyber attacks.

Eric and David Rahn of S2S Insurance Specialists understand these cyber risks well. With over two decades of working experience in mainstream business and watching technology advance at such a rapid pace, they can help you understand the cyber security risks of your marijuana company. They can review with you the cannabis company data breach policies that would most benefit your company. Contact Eric and David Rahn, the cannabis insurance specialists, for more information.

Opioid Epidemic Presents Lessons For Cannabis Businesses

The opioid epidemic has impacted nearly every state in the union. People are overdosing and in many cases dying by the thousands every day because of opioid abuse. Statistics in many recreational marijuana states show that the rate of opioid overdose deaths, along with the amount of marijuana prescriptions being filled, have lessened as of late. Many cannabis legalization advocates use these statistics to leverage their argument for legalization which would benefit the cannabis industry. While there is some positive for the cannabis industry there are lessons to be learned by the cannabis industry from the manufacturers of these opioid drugs. Opioid manufacturers are being sued by states, municipalities, and various advocacy groups across the country in class action law suits. The drug manufacturers are being sued for contributing to the growing opioid crisis and misleading the public on the addictive nature of the drugs and pushing them as an effective way to treat chronic pain, contrary to overwhelming evidence.

s2s insurance, eric rahn, medical marijuana insurance, opioid epidemic, cannabis insurance, marijuana patient dataYou may be asking what is the connection to cannabis businesses and how does it tie to cannabis insurance? While cannabis does not seem to create the same issues as opioids, there is no guarantee or sure way to know how people will respond when they take any substance. If consumers and or the public feel that they have been harmed in any way due to consuming cannabis manufactured and sold legally, there is potential for a claim against the dispensary, the cannabis lab testing facility or the manufacturer. Professional liability insurance, also known as errors and omissions (E&O insurance), is a special type of coverage that protects cannabis companies against claims that a service your company provided caused your customer or client to suffer financial harm due to mistakes on your part, or because you failed to perform some service. If one of your employees gives a customer the wrong information about a product, or a product is mislabeled, or if any number of things occur that could lead to perceived harm, your business could be held liable for those damages.

A coalition of 41 states’ attorneys general have served five major opioid manufacturers with subpoenas seeking information about how these companies marketed and sold prescription opioids. The coalition is also demanding documents and information related to distribution practices from three drug distributors.

The investigative subpoenas and document requests were sent to pharmaceutical manufacturers Endo International, Janssen Pharmaceuticals, Teva Pharmaceutical Industries Ltd./Cephalon Inc. and Allergan. The group also served a supplemental investigative subpoena to Purdue Pharma. Documents were also requested of three major pharmaceutical distributors: AmerisourceBergen, Cardinal Health and McKesson.

S2S Insurance, cannabis insurance specialists, marijuana insurance, Eric Rahn, opioid epidemic

The fight against opioid manufacturers is also extending to local municipalities, who are waging their own wars against the deadly epidemic. Bensalem Township is bringing claims against several drug companies and their subsidiaries, including Purdue Pharma, Teva Pharmaceuticals, Cephalon, Johnson & Johnson and Endo Pharmaceuticals. Similar litigation is already underway in Oklahoma, Ohio and Mississippi. However, in Philadelphia, construction workers are especially susceptible to injury and, as a result, often turn to opioids for rehabilitation, Dougherty said. But addiction is never far behind.

S2S Insurance Specialists are aware of the risks that may be out of your control as a cannabis business owner. It is important the business owners work with cannabis insurance specialists who understand the landscape. Eric Rahn of S2S Insurance asks, “if the crap hits the fan, are you prepared or will you be left holding a crap covered fan?” Contact Eric or any of the specialists at S2S Insurance today.

read more at policymed.com

D&O Insurance For A Canadian Reverse Merger

The amount of new headlines popping up regularly about United States based marijuana companies going public on a Canadian exchange through reverse mergers is pretty common these days. More and more US based marijuana companies are entering the Canadian public markets to gain access to private equity and public capital markets. This year we have seen MedMen Enterprises, a very popular and quickly growing marijuana dispensary company primarily located in California and Las Vegas, go public through a reverse merger on the Canadian Securities Exchange or CSE. MJardin, a Colorado based marijuana company also went public through a Canadian reverse merger on the CSE and everyone is anticipating both Acreage Holdings and LivWell to do the same in the near future.

 

canadian reverse merger, tsx, Canadian stock exchanges, cannabis insurance, s2s insurance, eric rahn, dispensary insurance

As often as you hear about reverse mergers they are not as simple as they may first seem and they are certainly not risk free. The appeal to entering an exchange traded equity market through a reverse merger is that it can be a quicker and less expensive way of going public than a traditional initial public offering or IPO. These US based cannabis companies find businesses trading on a Canadian exchange like the CSE, TSX or CNSX that are struggling financially for some reason, buy the majority of the shares of what would now be referred to as a shell company, and exchange the shares of the private company with shares of the shell company. While a reverse merger into a Canadian public company may be quicker and cost less than an IPO, it also comes with some additional risks that certain marijuana insurance policies can help define.

CBP, canadian reverse merger, marijuana insurance, directors and officers liability insurance, who insures the cannabis industry, s2s insuranceCanada’s marijuana industry is booming and expected to add another $5 billion in marijuana sales now that the Cannabis Act has been passed legalizing adult-use marijuana in Canada nationally. In fact, the commercial sale of adult-use cannabis is set to start on October 17th, 2018. Some other countries like Russia have condemned the legalization of cannabis in Canada saying that it violates international trade treaties. Recently the United States Customs and Border Protection Agency threatened to issue lifetime travel bans to the US for Canadian marijuana employees and investors. Here in the United States, marijuana is a Schedule 1 drug and authorities are suggesting that Canadians involved in the cannabis trade that are looking to enter into the US could proliferate the state legal marijuana industry here. Whether you agree with this stance or not, the financial risks to a marijuana business are still very real. How these cross border threats play out financially are still an unknown which is the very nature of risk and what marijuana insurance policies are for.

Cross border threats aside, there are inherent financial risks associated with reverse mergers no matter where they take place. Again, a shell company typically has financial troubles which is why they are targeted for the acquisition. What are those financial liabilities? Some companies that have moved forward with reverse mergers have missed certain debts and liabilities of the shell company, in particular in cases where the shell company was in the process of being sued.  Perhaps an acquisition is exactly what the shell company needed to get out from under certain debts. Another risk could be that without holding periods, the investors in the shell company could dump their shares right after the acquisition causing the price of the company to fall rapidly.

Toronto stock exchange, marijuana insurance specialists, Eric Rahn, S2S insurance, Canadian reverse merger, cannabis insuranceThese are only a few of the potential challenges that US based marijuana companies face by establishing themselves as a Canadian exchange traded company. Finding out how marijuana Directors and Officers Liability Insurance could help to financially protect you from the unforeseen only makes sense for a US based cannabis company that is considering going public in Canada. As a Canadian public company you must now comply with Canadian securities laws which adds an entirely new layer of compliance and liability to consider. Insurance for marijuana companies, such as Directors and Officers Insurance, is always a good idea and would certainly be good to have when going public in Canada through a reverse merger.

The elements of the unknown are heightened through reverse mergers, especially those that happen on an international exchange that will have rules that differ from US exchanges. That is why reaching out to S2S Insurance Specialists for hard to place marijuana insurance policies can be the solution you need. S2S Insurance Specialists focus on providing clients with this critical early stage insurance for complex cross border deals. Let us assist in guiding you through the minefield of issues required to obtain proper coverage. Here are some of the policies that your cannabis business can specifically benefit from before executing a reverse merger in Canada.

  • Directors and Officers Insurance (D&O Insurance for marijuana)

A D&O Insurance policy protects you as a director or officer of marijuana company of  wrongful acts that negatively affect the company’s profitability. It will also protect you if the company is sued as a result of these wrongful acts. The policy also covers legal damages and fees. Excess Limit Coverage Policies are available as well. Company executives, newly appointed officers and a board of directors should want adequate D&O insurance in place prior to moving forward with a reverse merger. Investors should require that any company they are investing in must have D&O Insurance to protect their investments from wrongful acts by the directors and officers. Again, when it comes to reverse mergers, it takes a lot of due diligence to ensure that the shell company does not have some hidden liabilities. Regardless of whether a wrongful act was truly intended, the liability still falls to directors and officers.

  • Professional Liability Insurance for cannabis companies (PLI)

Who would be held accountable during a reverse merger if errors and omissions were discovered? As a cannabis accountant or attorney, those blames could be turned upon you. A PLI policy can cover traditional business professionals such as marijuana growers, trimmers but also marijuana accountants and lawyer.

  • Employers Practice Liability for a marijuana business

If any of your employees file a claim against you for discrimination including age, race, disability, sexual discrimination, wrongful termination or some other type of discrimination; Employers Practice Liability coverage protects you from these types of employee-related claims. When a reverse merger occurs with a Canadian shell company, it is likely that your marijuana business may retain some of the shell company’s employees familiar with Canadian security laws. It may be challenging to judge their particular state of mind after their company has been acquired and the threat of discrimination claims cannot be ignored.

S2S Insurance Specialists is an international insurance broker for the cannabis industry. We will help you find the hard to place cannabis insurance policies that will protect you when taking such a big step by going public. Find the D&O policies, PLI and Employers Practice Liability policies by contacting Eric Rahn of David Rahn, the marijuana insurance specialists.

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.

read more at proactiveinvestors.com

Cannabis Insurance An Absolute Must For Cannabis Businesses

As a small business owner there are a number of unanswered questions and unknown threats to your business. Many of these unanswered questions can keep you up at night searching for answers. A question that often doesn’t get asked by small business owners and especially cannabis business owners is how much insurance should I have? Not only should you be asking how much, but you should be asking what type? General liability insurance you get at the insurance provider in your local neighborhood won’t work in the world of cannabis. Cannabis businesses need cannabis insurance. The cannabis industry needs an industry specific insurance product to protect the cannabis industry.

S2S insurance, eric rahn, cannabis insurance, testing lab insurance, who insures the cannabis industryThe cannabis insurance industry serves a specific purpose for the marijuana industry because of the design of the policies. Cannabis insurance does not include the same exclusions as traditional insurance policies. Traditional policies often have exclusions for contraband or illegal substances. For the foreseeable future the entire US cannabis industry revolves around an illegal substance. Marijuana or cannabis is listed as a Schedule I drug right next heroin. Marijuana has been legalized on the state level and is gaining support federally, but that does not change the need for specified cannabis insurance to protect your business.

A recent survey by Manta and Insureon reveals just how many entrepreneurs are putting themselves at risk. Fewer than three in 10 small business owners in the survey have a business owner’s policy, the basic business insurance that covers general liability insurance and commercial property insurance to protect you from loss. Even fewer (21 percent) have errors and omissions (E&O) or professional liability insurance, 17 percent have workers compensation insurance, 6 percent have business interruption insurance, and only 2 percent have cyberinsurance.

No matter what type of business you own, you operate under some degree of risk. Sadly, no business is completely immune to lawsuits. Fortunately, however, a variety of insurance options exist to help protect small businesses.

s2s insurance, eric rahn, liability insurance for marijuana, cannabis insurance specialists, marijuana crop insuranceA question you may have is, what type of cannabis insurance do I need? One of the biggest expenses for most business owners is property. Whether you own a store front, a warehouse, computers, and don’t forget about your inventory, you need to protect it all. Cannabis specific property and casualty insurance pays for damages to your business property resulting from a covered loss. This type of policy protects your place of business but also the contents within your place of business. An example would be if there is a fire in your store and you lose furniture, computers, inventory, it would all be covered up to your policy limits.

There are policies that will also cover expenses that protect your business from additional damage after a loss and the money required to keep operating your business until the damage from the loss is repaired. Property insurance is just one example of the type of insurance you should ask your cannabis insurance specialists about. There are also other types of cannabis specific policies such as product liability, data breach insurance, and errors and omissions. Eric Rahn of S2S Insurance puts it very bluntly, “are you covered if the mud hits the fan?” Don’t find out the hard way that you don’t have what you need or you don’t have enough of what you need, contact S2S Insurance today.

read more at postbulletin.com

Directors and Officers Insurance Integral In S2S Insurance Risk Management Strategy

As a member of the executive leadership team of an organization, there are certain responsibilities that fall under your umbrella whether they are explicitly stated or implied. As an owner of your business or even a board member of an organization, you are responsible for the management of your company’s affairs. That responsibility comes with the possibility of being sued if something is mishandled and leads to damage or injury. This is why we at S2S Insurance strongly urge business owners and managers to obtain directors and officers insurance. The cannabis industry is steadily growing as more and more states legalize cannabis. The growth of the industry requires more advanced risk management strategies due to the advanced risks that exist.

Companies large and small, public and private, for-profit and nonprofit all face director and officer (D&O) litigation risks. In a 2016 survey by Chubb, the average reported loss from a directors and officers judgment was $387,000. No matter how successful your cannabis related business is, the reality is that a substantial financial loss such as $387,000 could destroy your company instantly, or set you back to a point that may be difficult to recover from. If you are a director or officer at your organization, you could be sued for any number of reasons, including breach of fiduciary duty resulting in financial losses or even bankruptcy, fraud, failure to comply with workplace laws, lack of corporate governance to name a few. These suits can come from a variety of places including but not exclusive to employees, vendors, competitors, investors and of course customers.

s2s insurance, eric rahn, cannabis insurance specialists, directors and officers insurance, dispensary insurance, marijuanaA board member at GlaxoSmithkline is one of those being sued by the US state of Massachusetts over the US opioid addiction crisis.

The lawsuit seeks damages from 16 individuals, many of whom are members of the Sackler family, and Purdue.

“The Attorney General claims Purdue acted improperly by communicating with prescribers about scientific and medical information that FDA [the US Food and Drug Administration] has expressly considered and continues to approve,” it said.

In March a study by a federal agency found that opioid overdoses were up 30% over the previous year in the US, with Midwestern states having the highest jump in cases.

The Massachusetts lawsuit alleges that Purdue Pharma, the company behind the drug OxyContin, “created the [opioid] epidemic and profited from it through a web of illegal deceit”.

Ms Lewent was named in the lawsuit as one of those “who oversaw and engaged in a deadly, deceptive scheme to sell opioids in Massachusetts.”

s2s insurance, eric rahn, cannabis insurance, directors and officers insurance, testing lab insurance, cannabis businessNo business owner wants to find him or herself in court dealing with a directors and officers law suit, but there are precautions every business owner can take to help protect him or her self and their business in these situations. It is critical that as a director or officer of your company you consider investing in D&O insurance. Directors and officers liability insurance protects your personal assets along with your spouse’s if you are sued for mishandling the management of your company. S2S Insurance specialist, Eric Rahn, states “don’t make the mistake of assuming you are protected under your general liability policy when it comes to D&O insurance.” You should always review your policy with one of the marijuana insurance specialists at S2S Insurance and your attorney. Contact us today and we can begin to assess your risk and provide options to help you maintain a successful business no matter what might occur down the road.

read more at bbc.com

Employment Discrimination Lawsuits Are Increasing, Is Your Cannabis Businesses Protected?

According to the EEOC, employment discrimination lawsuits are on the rise. While this can be alarming to a cannabis business owner I should point out that not all discrimination is illegal and worthy of a lawsuit. An employer can “discriminate” against and fire an employee that doesn’t show up to work on time, an employee that consistently makes mistakes, people who are not qualified, or employees that wear see through shirts. Illegal employment discrimination is limited to a few specific issues, some more prominent than others. Title VII is the Federal Civil Rights Law that prohibits employment discrimination on the basis of race, color, gender, national origin, and religion. Sexual harassment falls under Title VII as well and connections for sexual harassment and employment discrimination are typically tied to gender.

S2S Insurance, Eric Rahn, employment discrimination, marijuana insurance specialists, insurance for marijuanaWhy is employment discrimination rising and what can cannabis businesses do about it? There are multiple reasons why there are increased law suits. One of the main reasons is awareness. Title VII is more than 50 years old, and many people are just unaware of what the laws mean or say. As information spreads about what employees rights actually are, the employees ability to recognize discrimination past and present increases. What this also means is that there may not be an increase in bad behavior, but just better acknowledgment of a consistent level of bad behavior. There is also increased coverage of employment discrimination in the news media. The news is on a 24 hour cycle that must be filled with information. News outlets are reporting more on the outcomes of not only major corporations but also government entities, and sometimes even small businesses as well. More coverage brings more awareness, see previous statement on awareness.

A 2017 survey by New Frontier Data that explores gender and racial diversity suggests the cannabis industry is better poised than others to tackle issues like gender disparity and sexual harassment head-on, due in no small part to the higher-than-average ratio of women in leadership positions.

The survey results revealed 27 percent of respondents had witnessed sexual harassment within the cannabis industry. And nearly 18 percent had personally experienced harassment. When the information was filtered to reflect the opinions of only women in non-leadership positions, that number rose to about 49 percent, however.

Kveton was accused of sexual harassment in a series of civil suits, which were resolved under undisclosed terms. Kveton never faced criminal harassment charges. He resigned from MassRoots two months after taking the position with 1.55 million shares of stock, $20,000 for his term and a $25,000 severance.

S2S Insurance, Eric Rahn, cannabis insurance, employment discrimination, employer protection liability insurance, dispensary insuranceWe know the problem and risk, which is rising employment discrimination, so how do cannabis business owners protect their companies and investments? Employment Protection Liability (EPLI) is how businesses protect themselves when a situation with an employee goes wrong and the business must protect themselves. “As you hire more employees, your risk of discrimination and sexual harassment increases, an EPLI policy can help your legal defense and settlement of such claims” – Eric Rahn of S2S Insurance. EPLI is a type of insurance aimed at protected companies and employers from legal action that arises out of employment practices. EPLI covers judgments, settlements, and defense expenses up to the specified policy limits for a company. With the climate of increased awareness and information cannabis business owners should reach out to S2S Insurance today to discuss risk management tools and options to protect their business.