Criminals are well aware that the cannabis industry includes many lucrative, cash-intensive businesses, which means you have a target on your back. In fact, the most common cause of loss facing cannabis businesses is theft. Approximately 90% of insurance claims in the US cannabis industry so far have involved an element of theft, according to Insurance Business Magazine (Dec, 2019). This new reality was recently punctuated in a recent article in the Denver Post, titled “Denver dispensary burglaries hit 3 year high as 2019 ended with a rash of armed robberies.”
Losses from an office burglary to destruction of property to theft of finished product can have a devastating effect on your business. The only way to ensure you get reimbursed from losses caused by certain illegal activities is to have Crime Insurance. Below are some of the common scenarios that Crime Insurance covers:
- Employee theft of money, securities or property inside the premises.
- Non-Employee theft both inside and outside the premises.
- Forgery or Alteration, including inadvertently accepting forged checks or counterfeit money or employees altering checks, bank drafts and other financial documents.
- Computer and wire transfer fraud.
- Robbery of valuables while in transit under the care of a messenger or armored car.
Many business owners are not aware that Cannabis Crime Insurance isn’t automatically bundled into a Cannabis Insurance Policy, and thus, when they experience a loss due to criminal activity, they are not covered. It is important to reach out to your Cannabis Insurance Specialist to discuss your needs and options.