Most any business that has some form of retail merchandise to sell, likely relies upon cargo, transportation, and/or warehouses. Retail goods need to be moved from one location to another and cannabis related products are no different. Where the cannabis related businesses are different is that if that if cargo or merchandise gets stolen, the black market is very extensive and the products are virtually untraceable once stolen. Cannabis cargo theft is a legitimate risk to marijuana related businesses and their ability to turn a profit. A lost shipment of paraphernalia would be a set back and could cause serious financial problems, but even worse would be the loss of a shipment of marijuana related products such as edibles, flowers, plants or oils. If you’ve already paid for merchandise and become a victim of cargo theft, how do you recover your loss? Cannabis cargo insurance is the best way to protect business against cargo theft once all other precautions are taken.
Cargo insurance provides coverage against physical damage or loss of goods during shipping, whether by land, sea or air. There are a number of inherent dangers involved in shipping, therefore the cannabis insurance specialists at S2S Insurance suggest using a cargo insurance as a staple in your cannabis related business portfolio to protect against cargo theft while in transit or while in storage. Cargo theft is becoming more advanced and requires cannabis businesses to stay ahead of would be thieves. Thieves will create fraudulent businesses to arrange for non-existent pickups and will find other ways to exploit gaps in supply chains by leveraging technology to do so.
Ringleaders Roberto Santos-Gonzalez, 37, and Carlos Enrique Freire-Pifferrer, as well as commercial truck drivers Juan Perez-Gonzalez, 44, and Eduardo Hernandez, 55 were sentenced. They were named with nine others in a 23-count indictment that charged them with participating in a conspiracy that operated from August 2012 to May 2015 and stealing $30 million in high-value merchandise carried by semi-trucks.
Members of the group would reconnoiter warehouse distribution centers run by national companies that distributed products including electronics, clothing, pharmaceuticals and cigarettes. The crooks would watch a center, then follow a semi-tractor and trailer leaving the building. They would steal the tractor and trailer when the driver stopped at a truck stop.
The crooks typically abandoned the tractor less than 20 miles from the truck stop and hooked up the trailer to another tractor driven by a member of their gang. The load would be driven to Louisville, Ky., where plans were made to resell the goods.
“Knowing the tactics that cargo thieves use can help businesses recognize their unique vulnerabilities as cannabis related businesses and prevent potential cargo theft,” explains Eric Rahn, an S2S Insurance specialist. Some of those tactics include identity theft, fake pick ups, misdirected loads, theft of trailer/container, hybrid theft scams and of course any combination of those previously mentioned. In order to help prevent cargo theft, cannabis businesses should conduct their due diligence on all third parties responsible for shipping their cargo, but also take additional safety and security precautions. Even taking the best precautions may not be enough and in those instances. S2S Insurance can help your business before disaster strikes. Working with a S2S Insurance agent before cargo theft, a fire, product liability, or even a workman’s comp claim hits, can save you money and prevent your business from becoming another failed start up.