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.
How Cannabis Companies Can Mitigate Their Risk Despite Schedule 1 Status:
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 there 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 below, 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.
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. To learn more, schedule a free 15-minute consultation by clicking here or contact Eric Rahn at eric@s2sinsurance.com.