Best Places To Grow Cannabis In The US

Many people are looking for ways to get into the growing cannabis industry. The potential is vast from cannabis dispensaries, cannabis lab testing facilities, edibles, infused drinks, oils and more. The one area people can also look at in this growing industry is actually growing cannabis. The obvious key to the industry is the actual plant, and the only way to have more cannabis is to grow cannabis. That being said, not all soil and growing conditions are created the same, so where are some of the best places to grow cannabis in the United States?

Leafly put together a list of the top five regions in the united states to grow cannabis and S2S Insurance Specialists thought we’d share it along with a few thoughts on how to protect your crop once you figure out if you are in a good place to grow cannabis and enter the world of marijuana.

Grow cannabis, S2S Insurance, Eric Rahn, marijuana insurance specialists, who insures marijuanaCalifornia’s lush, rugged northwest territory—dubbed the Emerald Triangle—is akin to the New York Yankees and their history-leading 27 championships. The region’s balmy Mediterranean climate and vast swaths of sloping mountainsides have made it a premiere growing location, akin to France’s Burgundy and its contribution to making wine.

Ranking second in indoor cannabis production behind California, Washington the Northwest territory proves to be a formidable rival to Oregon despite its more precipitous location on the west side of the Cascade Mountains. Areas nearby Seattle are dampened by heavy rain and lack of sunlight, leaving most growers to cultivate more sativas and early-flowering hybrids. However, towns east of the Cascade range get much better sunlight, while all parts of Washington benefit from the rich soil and abundance of fresh water.

Ranking 4th in indoor production, Oregon is a fantastic state for cultivation due to its relaxed personal cultivation laws and ease of entering the commercial industry. Naturally, the state grew way more cannabis than it even needs. Price declines have spelled trouble for many farmers, but consumers have rejoiced in $50 legal ounces, more than 80% cheaper than Califor

nia bud in 2018.

The East Coast may be notorious for low quality buds, but the Northeast can actually provide decent conditions for outdoor growing, namely Maine. Humid summers combined with a shorter fall season might not be ideal, but early-harvesting strains such as indicas or hybrids can benefit from the nurturing soil and the extremely fresh water.

Grow cannabis, Eric Rahn, S2S Insurance, marijuana crop insurance, dispensary insuranceGrowing cannabis is like any other form of agriculture and requires knowledge, skill, patience and a bit of luck. The luck comes into play when weather and other variables out of your control enter the picture. S2S Insurance Specialists can help take luck out of the equation by providing a risk management solution tailored to your needs. Some of the regions mentioned above are threatened by hurricanes, fires, and other real threats to agriculture and especially cannabis. Crop insurance, property casualty insurance and cargo transportation insurance are all options to help you with your grow operation. Contact Eric Rahn of S2S Insurance Specialists to discuss your risk management plan and to help protect your investments of time, money and energy.


How Workers Compensation Insurance Benefits Cannabis Businesses

As a cannabis business owner there are certain responsibilities and requirements that cannot be avoided. One requirement that causes trouble for some employers is workers compensation.  Most states require employers to carry workers compensation insurance with few exceptions other than number of employees. States vary on the number of employees any employer must have before carrying workers compensation but it can be as few as five or even one employee. While on the surface carrying workers compensation can seem like an unnecessary burden for the employer, it is important to recognize the benefits of the coverage.

cannabis workers compensation, s2s insurance, eric rahn, dispensary insurance, lab testing insuranceWorkers compensation insurance and coverage is designed to protect the employer in instances where an employee gets hurt on the job. If this coverage were not mandated or not available to employers, businesses would be at risk for law suits with every employee that walked through the door. Whether you are a start up cannabis dispensary, or a large manufacturer of cannabis goods, a single law suit could ruin your business in the blink of an eye. Even if a business is successful in defending against an employee law suit, they would have spent thousands of dollars in court and legal fees to do so. If they were to lose the case they would have those same fees, plus the cost of damages, and in some instances they may also have to pay the legal fees of the employee! Now imagine that scenario but add in the fact that if you don’t have workers compensation insurance in a state where it’s required, you can also be fined, even see your business possibly temporarily shut down until the matter is resolved.

The California Supreme Court on Thursday, Aug. 23 sided with employers in a fight over the right of workers to sue over treatment for injuries that occur on the job.

Workers receiving medical care through the workers’ compensation insurance of their employer generally cannot sue a doctor who decides whether treatment is needed, the court said in a unanimous decision.

The ruling came in the case of injured worker Kirk King, who says he suffered seizures after a doctor discontinued his anxiety medication.

The justices said King had to pursue his claims against the doctor through a separate workers’ compensation system set up by the Legislature, not through the courts.

The California Chamber of Commerce and insurance groups had warned that a ruling in favor of King would open the door to additional lawsuits that would drive up employers’ premiums for workers’ compensation insurance.

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Another benefit to workers compensation whether for traditional employers or for the cannabis industry is that workers compensation insurance is monitored by state governments. The full benefit of this fact may vary among states, but as referenced in the article above, state governments look to balance the rights of the worker with the costs to the employer. Employers will always want to spend less and employees will always want more, but states do their best to be a neutral arbiter when crafting laws and legislation dealing with workers compensation, as evidenced above. Eric Rahn of S2S Insurance makes a concise statement regarding workers compensation, “chances are you have to have it, and you do not want to get caught without it.”


S2S Insurance Helping Prevent Big Fines For Cannabis Business Owners

For all cannabis business owners, employee safety must be a priority. Whether you own a factory, a retail shoe store, or a marijuana dispensary, as a business owner it is critical that employees have a safe working environment. Unfortunately, no matter what safety precautions that you may have taken, or rules that are implemented, employees get injured on the job. Injuries can occur in any line of work including the cannabis industry and businesses owners should protect themselves and their investments. At S2S Insurance we work with cannabis businesses to help mitigate risk from employee injuries that occur on the job. We help our clients set up workers compensation policies that pay damages no matter who’s at fault for the accident.

S2S Insurance provides workers compensation insurance coverage for cannabis businesses

S2S Insurance provides workers compensation coverage for cannabis businesses.

In many states employers are required to maintain workers compensation policies. An S2S Insurance agent can walk you through the requirements of your state to help you determine what is required. In states where workers compensation insurance is required, not maintaining proper coverage can result in heavy fines that negatively impact the business’s bottom line. Even if a state does not require workers compensation insurance, business owners should discuss having one with an S2S Insurance agent as a form of risk mitigation. Having a policy that pays damages no matter who is at fault could save a business hundreds of thousands of dollars in some instances.

District Attorney Diana Becton said, “The District Attorney’s Office is committed to protecting the workers of Contra Costa County. Operations like these are an important part of obtaining compliance before an employee finds out the hard way that their employer did not have coverage for a severe injury.”€

“This operation protects employers who are playing by the rules from being undercut by those who don’t,” said California Labor Commissioner Julie A. Su. “We also issued these citations because employees are entitled to workers’ compensation insurance if they are hurt on the job.”

Willful failure to provide the insurance is punishable by substantial fines and misdemeanor criminal prosecution. Employees that do not know whether they are covered can check their employer’s notices board or ask a manager. Labor Code section 3550 requires the employers to post a notice identifying the current insurance at a conspicuous location.

S2S Insurance provides workers compensation insurance

S2S Insurance can help cannabis businesses manage risk

At S2S Insurance we look at your entire business platform and look for ways to limit your exposure to the various risks and pitfalls that can hurt your business. Workers compensation insurance is one of many insurance tools we use to help minimize risk for our clients. Not every product we provide works for every business which is why it is important you work with one of our experienced professionals at S2S Insurance to help you develop a risk mitigation strategy for your business. As always policy limits do apply and it is critical that you review and understand your policy selections with a qualified insurance agent and an attorney. Our goal is to be an asset and an additional resource to every client we work with in the cannabis industry. Whether your business is just starting out or established over some period of years, contact us today for your insurance needs.


Cannabis Crop Insurance Protecting Cannabis Farmers

cannabis business, marijuana crop insurance, cannabis insuranceThe cannabis industry is centered around agriculture and the ability to grow and cultivate marijuana plants. Cannabis crop insurance is a way to protect this particular type of agriculture. The results of cannabis agriculture produces various edibles, oils, and flowers people use to consume cannabis for medicinal or recreational purposes. In order for any of the previous mentioned applications to exist, there must be a crop that produces a yield to put into market. If you produce a crop that can potentially turn a profit, you will need insurance, cannabis is no different, thus marijuana growers should have cannabis crop insurance.

As the cannabis market expands and more underwriters and insurers become willing to take on the risk despite the Schedule 1 status of marijuana, opportunities for risk management will grow. Cannabis crop insurance may sound like an unnecessary expense to a cultivator in their early stages, but insurance cannot be overlooked. Imagine investing a portion or all of your life savings into starting a grow operation only to lose it all to a fire. There are many in the industry who have experienced such loss, but there are also others who were able to protect themselves and their investment with a sound risk management strategy.

One Carpinteria farmer won an insurance payout well in excess of $1 million after ashes from the Thomas Fire destroyed thousands of his plants. What was unusual was that the plants were marijuana. As cannabis cultivators come out of the shadows, pot businesses are starting to operate like any other businesses — they have lawyers, accountants, bankers, and, more recently, insurance brokers. Most of the Northern California cannabis farms scorched by last fall’s wildfires did not have insurance. They were forced to suffer huge losses. But now insurance brokers in Santa Barbara County are starting to tap into the once-illicit industry.

cannabis insurance, testing lab insurance, cannabis crop insurance, dispensary insuranceThere are many growers that suffered massive losses that prevented them from competing in the cannabis industry again. While a marijuana grower with a cannabis crop insurance policy may still experienc some losses, because of their cannabis crop insurance policy they are able to significantly reduce that loss. As a new business owner you risk severe exposure to financial loss if unforeseen risks are not accounted for in some capacity. For a grower or a business owner with a grow operation, cannabis crop insurance should be explored with a knowledgeable insurance agency that can help you decide what policy is right for you.

Growing marijuana,  regardless of whether a grow operations is outdoors or indoors, is no different than any other crop in the sense that the variables of nature such as fire, storms, earthquakes, or other natural disasters must still be accounted for. Because we can’t predict these various perils, risk management policies exist to help fill the void of the unknown. It is also important to remember that regardless of what type of cannabis crop insurance policy you have, coverage limits will apply.  You must read your policy with both your agent and your attorney to determine what your coverage consists of. As a business owner, if you are going to invest your time and money into an endeavor such as a cannabis grow operation, it only makes sense to protect that investment against the unforeseen.


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.