Frequently Asked Questions

Do you provide the cannabis, hemp or CBD insurance programs in all states?


S2S Insurance Specialists has the ability to write insurance coverage in every state and the District of Columbia where marijuana is legal either medically, recreationally or both. With over 30 years of experience and deep knowledge of the cannabis industry, backed by the support of our underwriters both domestic and foreign, we can provide you with all the necessary coverages tailored to your specific needs and budget.




Why do I need Cannabis/Hemp/CBD insurance?


Every business has operational risks and cannabis businesses are no different. However, the cannabis industry faces even greater exposure to risk due to varying, complex state and federal government regulations. Companies throughout the supply chain are subject to risks such as product contamination, fire and theft. As the industry continues to evolve, operators will need to be more diligent in controlling and managing risk and the only way to protect your business from seed to sale is with insurance products that are customized to your operations. We'd be happy to answer your specific questions. Click here to schedule a free consultation.




How can I protect my products if there is a product recall?


Many things can happen to a cannabis crop, ranging from pesticide contamination to spoilage to equipment malfunctions, all of which pose a significant risk. Even if the original seed or flower was confirmed free of mold or contaminants upon sale, a business can still be dragged into a product liability claim for contamination issues that are introduced along the supply chain. Product liability insurance Is designed to protect your cannabis company from first-party and third-party claims of bodily injury, crop or property damage, and other damages caused by the product anywhere along the supply chain. With proper coverage, your insurance company will pay for damages and legal expenses if you are sued, up to your policy limits. For more information on Product Liability Insurance, click here.




How much does cannabis insurance cost?


The exact cost of this insurance can vary significantly based upon the coverages you need, coverage limits, size of your organization and in which state(s) you operate. S2S Insurance Specialists can develop a customized risk management program to meet your precise needs and budgets. Our clients are often surprised at the options and affordability of insurance. To get started, click here to schedule a free consultation.




What is Directors & Officers (D&O) insurance and why do I need it?


D&O insurance protects your directors and officers from being personally liable in lawsuits filed by shareholders or third parties. In addition, it will cover the hefty legal defense fees and any fines you may incur, so that your business can continue to operate. In the cannabis industry, many outside investors are only attracted to companies with D&O policies because investors want - and often require - the protection D&O insurance provides should a claim be filed against your business. Click here to schedule a free consultation.




Why is cannabis insurance more difficult to find than insurance for other businesses?


Federal banking restrictions are one of the reasons the large, traditional insurance companies do not offer cannabis-related insurance policies. The banking system is essential for all insurance companies and violating federal law on cannabis could jeopardize their ability to use that system, thus reducing the number of insurance carriers willing to provide policies in the cannabis market. S2S Insurance Specialists has established relationships with several of the most prominent underwriters, thus we can provide your cannabis business with the access to the insurance coverages you need to protect your business. Click here to schedule a free consultation.




Why work with an insurance broker vs. going to direct to an insurance company?


Independent insurance brokers like S2S Insurance Specialists offer multiple policy and product lines from a broad selection of insurance companies while direct writers work specifically with one insurance company. Essentially, brokers are a one-stop-shop and handle all the tedious price and coverage comparisons in order to present you with your best option. Furthermore, if your insurance rates go up, your broker can shop your policy to see if you could save money by switching to another insurance company. Furthermore, if/when a claim arises, your insurance broker will assist you with the claims process and negotiate on your behalf. For more on the benefits of working with an independent insurance broker, click here.




How can I protect my business from being sued by a disgruntled employee?


With the rising number of employee-related legal claims in the cannabis industry, all it takes is one disgruntled employee to sue and cause irreparable damage. Even if you win the court case, the legal process is highly disruptive and the costs to defend the claim are exorbitant. Employer's Protection Liability Insurance (EPLI) protects your business and pays the compensatory and legal defense fees associated with lawsuits for wrongful discipline or termination; breach of contract; sexural harassment; age, sexual, race or disability discrimination, mismanagement of employee benefit plans or claims emotional distress. For more information on EPLI Insurance, click here or schedule a 15-minute consultation with us by clicking here.




Does my business need Workers' Compensation Insurance?


Whether your business consists of 3 or 300 employees, Workers' Compensation coverage is important and actually required in most states. On a daily basis, employees are exposed to risks due to your business operations. Even one accident can be a precarious and costly expense for any business. If a worker is injured due to a chemical exposure, or a budtender slipped in your dispensary, Workers' Compensation Insurance will pay for the medical care and lost wages of your employees. For more information about Workers' Compensation coverage, click here or schedule a 15-minute consultation with us by clicking here.




What does Property & Casualty Insurance Cover?


Whether you own a retail store, a warehouse, a testing facility or any inventory, you need to protect your assets from potential loss or damage. Property & Casualty (P&C)Insurance protects your business against common and costly perils such as a fire, lightning, explosion/implosion, and even less common - but still possible – risks like riots, strikes and terrorism. P&C Insurance not only pays for damages to your business property resulting from a covered loss but it also the contents within your place of business, including office furniture, computers, inventory and other assets essential to your business operations. There are policies that will also provide the funds required to keep your business afloat until the damages from the loss are repaired. Any cannabis business with a physical property and location(s) should have a comprehensive property and casualty P&C policy in place. To learn more, click here or schedule a 15-minute consultation by clicking here.




How can I protect my crop if there is a fire, flood or other natural disaster?


Unfortunately, many cultivators find out the hard way that when a natural disaster strikes, they are not protected by their general liability coverage alone. The only way growers can protect themselves is by adding Crop Insurance as a supplemental coverage. Crop Insurance is specifically designed to protect cannabis and hemp growers from natural disasters such as wildfires, hurricanes/heavy winds, and flooding/water damage. However, it can also cover incidents like theft, explosions, vandalism, and other unpredictable and uncontrollable events that result in an “interruption of service.” If you have Crop Insurance, you will be reimbursed for financial losses and/or damages to seeds, seedlings/clones, vegetative plants, flowering plants, harvested plants and finished stock. You can also structure your policy to include equipment breakdowns and broken machinery. For more information on Crop Insurance click here or schedule a 15-minute consultation with us by clicking here.