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SAFE Banking Act of 2019 Would Protect Banks Working with Cannabis Companies

The amount of liability in the marijuana industry is staggering. Possibly the greatest financial risk of owning a cannabis dispensary, or any business that handles the marijuana plant on a regular basis, is that most cannabis based companies are left with no choice but to work on a cash-only basis leaving them vulnerable to robbery. The House Financial Services subcommittee met recently to discuss the challenges banks are facing by working with cannabis companies and potential solutions. The meeting included discussing the newly introduced SAFE Banking Act of 2019, also known as the Secure And Fair Enforcement Banking Act of 2019.

safe banking act of 2019 and cannabis insurance specialists

While some robberies at cannabis companies involve violence, including one incident in Colorado that left a security guard dead, the greatest threat of robbery may be internal from trusted employees. The temptation when cash money is laying around is often too much to overcome. Dispensary insurance is of the utmost importance with the current banking challenges that cannabis companies must contend with. Cannabis insurance specialists are difficult to come by since most insurance companies steer clear of any business that is associated with a Schedule I controlled substances.

While the House of Representatives may vote on and pass the SAFE Banking Act of 2019 during the current legislative session, the bill will face a much greater challenge passing in the Senate. Senate Majority Leader Mitch McConnell does not support the legalization of marijuana, or anything that furthers marijuana reform, even though he does support the legalization of hemp. Regardless of what happens, S2S Insurance Specialists are here for any cannabis company’s insurance needs as we have attained a clear understanding of the financial risks associated with the cannabis space.

“The conditions are as good as they’ve ever been for legislation to proceed,” said Ryan Donovan, chief advocacy officer for the Credit Union National Association, a trade group that lobbies for credit unions. “75% may be a little high, but [the odds] are better than they were in the last Congress.”

“This hearing is part of an effort to try to generate some momentum in the House of Representatives,” Donovan said. Prospects for cannabis-banking legislation “might be easier to see once we get past the shutdown threat and get into more of a normal legislative environment,” he added.

“The safety of thousands of employees, business owners, security personnel, police officers and community members is in your hands,” Neill Franklin, the Law Enforcement Action Partnership’s executive director, told the subcommittee on consumer protection and financial institutions. LEAP is a nonprofit known for opposing the “war on drugs.”

The ranking member of the House Financial Services subcommittee, Missouri Rep. Blaine Luetkemeyer, argued against the SAFE Banking Act of 2019 and his thoughts were echoed by the chairman of Smart Approaches to Marijuana, Jonathan Talcott.

missouri rep. blaine luetkemeyer discusses safe banking act of 2019
Missouri Rep. Blaine Luetkemeyer

“You really need to address the Controlled Substances Act and its prohibition on marijuana … before any of the proposed changes and safe harbors would be effective,” Talcott said in his testimony. Luetkemeyer made a similar point, saying lawmakers were “dealing with an illegal industry at the federal level” and “putting the cart before the horse” by focusing on the industry’s banking needs.

Until marijuana is rescheduled on the Controlled Substance Act, or completely descheduled, cannabis companies must make sure that their financial risks are covered and marijuana insurance policies are the smartest alternative. We offer CBD product liability insurance, cannabis crop insurance, D&O insurance and cannabis dispensary insurance. Contact Eric Rahn or David Rahn, your cannabis insurance specialists.

read more at marketwatch.com

Weed | A Guide On Legal Marijuana Products | S2S Insurance

Cannabis advocates, for the most part, are very well versed in the socio-economics of legalizing cannabis. They can tell you historical criminal data, they can talk to you about the health benefits and impacts of the plant along with many other data points. While all that is fantastic, if you’re new to the world of recreational and medical cannabis, you may have some basic questions about what type of marijuana products are out there.

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Let’s be honest, many people are interested in cannabis for its psychoactive effects, but what if you’ve steered clear of marijuana up until this point and know nothing. What do you do? We at S2S Insurance Specialists are not only experienced insurance specialists, but we take all aspects of the cannabis industry seriously as well.  Check out these tips below on how to shop for cannabis based on the experience you believe suits you the best.

The basic marijuana product, the dried and cured buds of the cannabis plant, is now called flower. Dispensaries often display it in glass jars for customers to stick their noses in.

Flower comes in three main categories. Indica, sativa and hybrid. According to stoner tradition, indicas induce a nighttime sedentary effect, while sativas offer a peppier daytime buzz.

While virtually everything available in dispensaries today is a hybrid of some kind, indica became associated with certain observable characteristics like broader leaves, and most importantly, its earthy smell. Sativas, meanwhile, are generally associated with bright smells like citrus and pine.

Each of the three main categories are divided into thousands of “strains” just as there are many varietals of grape. The difference is there is a formal recognized difference between, say, malbec and merlot grapes. But even with the best known marijuana strains – such as sour diesel, OG kush or durban poison – it is largely up to the beholder to determine what a plant is.

Savvy buyers understand that what one shop calls sour diesel, won’t necessarily resemble what another shop calls sour diesel. The defining trait of a sour diesel – a diesel-y smell – is up to the beholder to look for or not, as she wishes. Similarly if the sour diesel isn’t selling, there is nothing to stop a dispensary from renaming it something that will sell better.

Labels are not especially helpful, but that doesn’t mean customers can’t tell the difference between good pot and bad pot. Or, given the abundance of product available in legal places, good pot and even better pot.

Marijuana and many other plants get their smell from chemicals called terpenes. And many connoisseurs look for rich terpene bouquets. Other aromas, Kornberg said, can clue buyers into lower-quality product. The smell of hay can indicate the plant was improperly cured or dried, she said, and is “kind of the worst”.

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As interest in cannabis grows, the demand and market for cannabis related businesses will grow as well. No matter what aspect of the cannabis industry you are interested in, do not neglect risk management while you’re putting together your business plan. Insurance is a necessary component of any business plan and it is no different when starting and running a cannabis related business. Contact Eric Rahn of S2S Insurance Specialists to discuss your risk management strategy.

read more at theguardian.com

Cannabis Industry Top Paying Jobs

The beauty of the cannabis industry is that as it becomes less taboo, more opportunities will arise for more individuals to profit in the flourishing field. Not everyone involved in the cannabis industry can be a dispensary owner or a cannabis grower. There is a need for budteneders, bud trimmers and cannabis insurance providers like S2S Insurance Specialists. While these jobs are all important and require certain skills, there is also a demand for jobs that require a more advanced skill set and knowledge. These jobs are more than likely to turn into careers for those qualified, and not just part time jobs while in school.

The jobs cannabis industry employers are most eager to fill usually require chemistry, botany, and/or engineering degrees. The jobs deal heavily with the science of manipulating the cannabis plant for a desired product or effect. Many of these higher skilled positions can pay in the six figure range for larger companies with all signs pointing towards long term job security.

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Budtenders, who sell marijuana to customers at dispensaries, typically make about $14 an hour. The job requires an in-depth knowledge of cannabis strains and products and a bartender-like rapport with customers. In Colorado and also Michigan, where medical marijuana is legal, budtenders are required to have licenses.

The greatest demand, according to James Yagielo, co-founder and owner of the Florida-based headhunter HempStaff, is for master extractors. They process the active components THC and CBD from marijuana and hemp to make oils, concentrates, edibles and other products.

The master extractor at Acme Elixirs, a producer of THC and CBD chews and vape pens, earns $250,000 a year, said founder and CEO Peter Pietrangeli. But he said that even with that level of pay it’s hard to recruit and keep these workers “because after a while they’ll get the funding to build their own labs.”

Becoming a master extractor requires a PhD in biochemistry with a background in engineering, which means there’s a small pool.

He said job seekers with degrees in botany, chemistry or pharmacology are the next generation of master growers and lab directors. Like master extractors, lab directors and master growers can earn big dollars.

“I know some master growers who make more than $200,000. They’re valuable,” said William Simpson, CEO of Golden Leaf Holdings, an Oregon-based chain of dispensaries, cannabis farms and manufacturers. “That is going to be a very sought after, difficult position.”

Elad Spiegel, director of cultivation and breeding for Golden Leaf, said his annual pay is $120,000. He has a bachelor’s in plant science from Hebrew University in Jerusalem and started working in the cannabis industry in his native Israel before joining Golden Leaf in 2015.

cannabis insurance, s2s insurance, david rahn, cannabis industry, marijuana professional liability insurance, cannabis insurance specialistsHaving a master extractor or master grower can be a benefit for a growing cannabis company. But, like anything in business there is risk involved. Certain professionals, because of their expertise, are held to a higher standard of liability due to the impact of their potential mistakes. These professionals are well trained and skilled at not making mistakes, but they do happen. If a mistake does happen, you as a business owner want to be prepared. Eric Rahn of S2S Insurance asks a simple question when potential clients waiver on cannabis insurance, “When the shit hits the fan can you afford to clean up the mess?” Professional liability insurance is designed to protect professionals against liability incurred as a result of errors and omissions in performing their professional services. This protects the professional, and with the right risk management strategy, can protect your business as well. Contact S2S Insurance Specialists today to see what we can do for your cannabis business.

read more at money.cnn.com

The SEC May Find Your Marijuana Company Negligent in Cyber Fraud Cases

The enthusiasm towards the marijuana industry is palpable. The cannabis space is growing at a remarkable pace and both voters and legislators are going through the slow process of adapting laws to make room for the industry in the mainstream. However, it is easy for a marijuana company to get lost in the enthusiasm and lose sight of the bigger picture. The reintroduction of cannabis into the mainstream at this time, an era where technology is advancing at a speed most people are challenged to keep up with, presents risks any cannabis entrepreneur should stay current with on a consistent basis. These are the sorts of risks that only the proper marijuana insurance policies may be able to cover. Many companies may feel they have solved their cyber security problems by having anti-virus software throughout their network of company computers. But, many cyber attacks have little to do with the vulnerabilities present in a computer, but instead with the users of the computers.

SEC cyber security report, Marijuana company, marijuana data breach insurance, s2s insurance, eric rahn, marijuana insuranceRecently, the SEC issued a warning to mainstream publicly traded companies that they will soon have little tolerance for negligence in maintaining cyber security. While the advancement of technology is swift, companies have now had decades to become accustomed to electronic financial transactions and the criminal efforts to fool companies into making deposits into fraudulent accounts. Sections 13(b)(2)(B)(i) and (iii) of the Securities Exchange Act of 1934 (“Exchange Act”) requires that companies “devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization,” and that “(iii) access to assets is permitted only in accordance with management’s general or specific authorization.”

marijuana company, cannabis email fraud, marijuana cyber security insurance, eric rahn, s2s insurance, who insures marijuana companies, cannabis insurance specialistsIn the SEC report, none of the companies referenced, which lost nearly $100 million in total to cyber fraud, were found to be guilty of negligence. However, the report is a clear warning by the SEC to these companies and others, that anything but the strictest protocol for tracking transactions will be sufficient for publicly traded companies moving forward in order to protect investors. Hardly any of the funds stolen from these companies were recovered. To have a reparation filed against a company by the SEC for negligence in accounting controls on top of losing millions of dollars would scare shareholders away. The incidents referenced in the report involved the simple use of email. In some cases, an email address was created that looked like an official request for payment from an executive at a vendor. On the surface the email may have looked official, but employees working in processing plainly rushed through their tasks without reading emails thoroughly, or they would have likely identified discrepancies. The other cases involved hacking into company email accounts and manipulating financial ledgers. The criminals blended future transactions into the their look-alike vendor accounts with legitimate future transactions. The SEC’s point should be well taken. The stolen funds were ultimately due to the fact that the companies were not following their own sets of checks and balances and failed to identify the scams, when a diligent eye would have caught them.

marijuana company, s2s insurance, david rahn, cyber security insurance, cannabis insurance specialistsNow, if we take a look at the cannabis industry, the vulnerabilities to these sorts of attacks seem obvious. Cannabis companies have much more to track on their own due to the federal Schedule 1 status of marijuana. A marijuana business does not have the benefit of bank record keeping to track transactions since most banks refuse to accept the funds of a cannabis company in fear of violating anti-money laundering laws. Granted, cyber attacks like the ones identified in the SEC report rely upon electronic transactions, therefore a cash business would not be the target of this specific sort of cyber crime. However, as long as a criminal can isolate a flaw in a company’s tracking of financial transactions, they will see an opportunity to steal. Should the federal government look to legalize cannabis, and banks do start accepting the funds of the marijuana industry, then cannabis companies may be the biggest target of all. Phases of transition are where mistakes are most likely to occur, and hackers know it.

Tracking products all the way from seed to sale is not only happening in the cannabis industry. With the creation of blockchains that are commonly associated with cryptocurrency, comes a means to create verifiable ledgers for all sorts of transactions that are not centralized and therefore are not as easy to hack. So, if you want to know that you are eating a tomato grown on a certain farm in the United States, the tracking system can confirm where the tomato was grown and where the seed came from. To do this, a strict log of all transactions must be kept and quickly verified by third parties. Any discrepancy in that log throws up red flags and any fraudulent transactions can be rooted out quickly. It is this sort of organized tracking that is the way of the future and intended to eliminate these very sorts of fraudulent cyber attacks. While the advancement of technology provides new and different opportunities to steal, it also provides solutions.

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The unfortunate incidents cited by the SEC in their report shows that human involvement is still very necessary when it comes to accounting and logging transactions. It is necessary for all protocol to be be followed exactly on a consistent basis in order to prevent these sorts of breaches that can result in the loss of millions of dollars. Computers are nothing without people still, which means that human error will continue to be a factor. However, cyber security or data breach insurance for a marijuana company can counter those financial losses. It is up to the pioneers of the cannabis industry to set the standard, once marijuana goes completely mainstream, by recognizing cyber threats and continuously staying updated on new threats. Things are happening fast, and should marijuana become rescheduled or even descheduled, then a multi-billion dollar industry will suddenly be thrust upon the banking sector. Clever criminals will identify this transition phase as a time when sloppy accounting and other slip ups are likely to happen leaving cannabis companies vulnerable to cyber attacks.

Eric and David Rahn of S2S Insurance Specialists understand these cyber risks well. With over two decades of working experience in mainstream business and watching technology advance at such a rapid pace, they can help you understand the cyber security risks of your marijuana company. They can review with you the cannabis company data breach policies that would most benefit your company. Contact Eric and David Rahn, the cannabis insurance specialists, for more information.

New Opportunities In The World of Cannabis Require Cannabis Insurance

The cannabis industry is growing, and it is no secret. 30 states across the country have legalized cannabis for medicinal use and 9 different states have both medicinal and recreational marijuana. As the states legalize the drug, the cannabis market in these states has created opportunities for multiple business types and business owners. If you are opening a cannabis business you undoubtedly have a great deal of responsibility and are constantly reviewing what your company needs and what expenses you can save. One of those expenses you must account for is cannabis insurance.

Every small business should protect their assets with insurance, and for marijuana companies, they need cannabis insurance. Defending against claims and lawsuits can be a costly and a time-consuming process. Yet many cannabis business owners risk everything they’ve worked for by not having a risk management strategy. There are multiple types of essential cannabis specific insurance coverage options for cannabis business owners, both large and small. S2S Insurance provides multiple types of insurance: D&O – Directors and Officers liability, EPLI-Employer’s Protection liability, Product liability, Cargo/Transportation/Warehouse, Professional liability, Worker’s Compensation, Property and Casualty, and Cyber Defense.

Donnegan Systems Cannabis Storage, Eric Rahn, S2S insurance, cannabis insurance specialists

Donnegan Systems Cannabis Storage

Since the 1970s, law enforcement officers across New England have stored marijuana they seized in secure evidence lockers purchased from Donnegan Systems in Northborough.

Today, the storage solutions company says a full 10 percent of its revenue comes from licensed marijuana cultivators, which are snapping up its sliding “ActivRAC” shelves to maximize the amount of cannabis they can grow in a warehouse. And with recreational marijuana sales about to start in Massachusetts and other states contemplating their own commercial cannabis markets, Donnegan Systems chief executive Jeffrey Loreaux expects that figure will soon pass 20 percent.

“We’re already reinvesting the money we’ve made in cannabis,” Loreaux said in an interview. “We’ve hired more service technicians, more salespeople, more installation crews — it’s provided a lot of growth and it will continue to. We definitely see a huge opportunity here.”

cannabis insurance, Eric Rahn, S2S insurance, dispensary insurance, lab testing insurance, marijuana business risk, marijuana insuranceIt is important for cannabis businesses to partner with an insurance carrier that understands the cannabis business so that the policy can be tailored to fit its specific needs. For instance, if your business subcontracts some work to others, it is important for the policy to cover the work of those subcontractors. It is also important to remember that a standard insurance policy may exclude certain contraband such as marijuana. Cannabis is still considered a Schedule 1 drug by the DEA and is therefore illegal federally. The federal illegal status of the drug has not stopped legalization in individual states, but it does preclude some standard insurance policies from paying out should an incident occur. Working with an experienced cannabis insurance professional like Eric Rahn of S2S Insurance will allow you as a businesses owner to develop a risk management strategy specifically crafted for your cannabis business. As with any insurance policy, coverage limits do apply and therefore you should always review your policy with an experienced insurance agent along with your attorney. Contact S2S Insurance Specialists today to develop a risk management strategy for your cannabis business.

read more at bostonglobe.com

Selecting a Qualified Cannabis Insurance Broker

The legal marijuana business sector may be relatively new compared to, well any other industry, but that does not change the fact that traditional best practices still apply. Many cannabis business owners may have a mentality towards risk. They may feel like they took a big risk in the first place entering into the industry and that diving into the business simply means that you have to accept the risks that come with working with a substance that is listed on the Controlled Substance Act. While that may be the right attitude, delving into the details is merited so that a marijuana business owner is making wise decisions and not taking on anymore risk than they absolutely have to. Be conscious of the risks you are taking by understanding them entirely and provide financial security wherever you can through marijuana insurance policies. The best way to begin is by selecting a qualified cannabis insurance broker.

Article Highlights:

Qualified Cannabis Insurance Broker, dispensary insurance, liability insurance for marijuana, cannabis insurance specialistsIn the years that S2S Insurance Specialists has been operating, we have noticed an almost blasé attitude towards risk mitigation in the cannabis space. If you are taking your business seriously, than you must take risk mitigation seriously. Do you really think that fire hazards are less likely for a marijuana business? Do you believe that sexual harassment does not exist within the confines of your walls? Do you not think you are vulnerable to theft? If you do think these things then you are not paying attention to the news. Many fires have broken out at dispensaries, in fact explosions have occurred especially for those companies specializing in marijuana extracts where at times dangerous equipment, high pressure and volatile chemicals are mixed together. And, criminals are well aware that the marijuana industry is cash heavy.

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The real challenge for marijuana companies in terms of understanding their financial risk is a lack of cannabis insurance professionals. Most insurance agents are avoiding the cannabis space due to its Schedule 1 Controlled Substance Act status and also are not doing their due diligence in researching this restrictive sector.  Cannabis business owners are skeptical that the insurance agent they are speaking with don’t even know the specific and oftentimes unique risks associated with the marijuana industry.

Whether you grow and cultivate marijuana, own a cannabis dispensary, manufacture extracts or own a marijuana lab testing company, these are all jobs that involve handling the marijuana plant. It is these specific industries that really have to contend with the federal illegality of cannabis rather than most ancillary businesses associated with marijuana, though they too should be conscious of their risks. If your company is in the United States, Canada or any other country, insurance for marijuana is very much worth looking into. The challenge is finding the marijuana insurance specialist that can direct you to the right policies for your business and turn cannabis insurance into an asset of your company.

 Qualified Cannabis Insurance Broker, testing lab insurance, cannabis insurance, medical marijuana, employer protection insuranceAsk your insurance specialists; what are the current national and state marijuana insurance carriers? Ask what type of policies they are presently working with. Ask them if they are licensed marijuana insurance specialists as the field is very limited.  Ask questions, lots of them, and make sure they are not just placating you to earn your business without considering what is truly in your best interest. As a marijuana business owner it behooves you to really read through your entire policy and see if your agent is taking the time to clearly walk you through the policy. What are you most interested in? The answer is marijuana policy exclusions and endorsements. If the insurance agent is only showing you the advantages of the policy, then they are focused on selling exclusively. Big tip, read your marijuana policies backwards. Start on the last page, that is where you will find the exclusions, what the policy does not cover.

Marijuana insurance specialists will have endorsements from the clients they are working with. Ask for their references. If an insurance agent does not have any marijuana insurance references, that likely means it is not their focus and that they do not understand entirely the very policies they are showing you. True marijuana insurance specialists, like you find with Eric and David Rahn at S2S Insurance, will be very frank with you right from the beginning by explaining that the cannabis industry has a lot to navigate due to the restricted status of cannabis. They will inquire about which state you are based in and then delve into the details of that particular state’s marijuana insurance policies. They will also discuss the national policies towards marijuana whether it is in the United States, Canada, Mexico or outside of North America.

Here are the main points. Not all marijuana insurance policies are the same, so read them. Read policies starting from the last page so that you first understand the exclusions, what the policy will not cover, and see if there are any endorsements. Remember that not all internet or retail insurance agents understand the restrictions surrounding the marijuana industry. Not all insurance agents are licensed to underwrite marijuana insurance policies either. Marijuana policies are in flux in each state and country, so your marijuana insurance agent better be confident when explaining to you the most current policies concerning marijuana in your particular geographic location.  Read policies carefully and ask for references. Like any other business, marijuana companies need employer protection insurance, D&O insurance, liability insurance, workers compensation insurance and crop insurance. The challenge is understanding the limitations to a policy due to the legal restrictions surrounding marijuana and discovering that the marijuana insurance policy is crafted around those restrictions and designed specifically for a marijuana business.

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S2S Insurance Specialists understand cannabis insurance for recreational marijuana, medical marijuana and all of the businesses associated with the cannabis industry. We have the licenses and knowledge to direct you to the policies that will provide the exact coverage your company needs. When speaking with a marijuana insurance specialists at S2S Insurance, you will feel confident that you are being provided with the best possible service for you, your directors and officers and overall operation. Organizing and optimizing a business in a restricted industry like marijuana may be more essential than it is in the traditional business space. S2S Insurance Specialists can guide you to the marijuana insurance policies that will optimally cover the unique risks associated with your business.

Product Liability Claims In Cannabis Bound To Rise As Investments Increase

The acceptance of cannabis use is on the rise across the country. Each year a few more states choose to legalize the Schedule 1 illegal substance, and support for legalization on the federal level is also on the rise. Not only are state and federal legislators taking a deeper look at cannabis but also investors. Besides venture capitalists and angel investors for startups, large corporations are beginning to stake a claim in the cannabis market. Constellation Brands is investing a record (for cannabis companies) $4 billion US into Ontario-based Canopy Growth Corp in a deal to produce non-alcoholic cannabis based beverages. This massive investment by Constellation Brands set off a wave of investments into marijuana related stocks. While this explosion of investment is good for the cannabis industry, the inevitable result will be a rise in product liability litigation.

dispensary insurance, marijuana edibles, s2s insurance, eric rahn, liability insurance for cannabisYou may be thinking, how can more investment in the cannabis industry be a bad thing that leads to product liability litigation? The equation is simple, more consumers using more products plus the law of averages. With increased medical and recreational marijuana use and sales there will in turn be an increase in potential litigation. Issues like negligence, breach-of-contract, intentional misrepresentation, marketing to youth, design defect claims all increase in their probability of occurrence every time the market, use and demand increase. As the market grows there will be fewer customers with a full knowledge of what they are consuming, which could lead to over dosing and other bad reactions. Customers may potentially sue for negligence or failure to warn in that instance.

Constellation, among the first big alcohol makers to invest in the marijuana industry, pumped almost US$200mln in Ontario-based Canopy Growth Corp (NYSE:CGC), last year in a deal to produce a non-alcoholic cannabis-based beverage. It recently upped its investment in cannabis with a record US$4bn investment in Canopy, spurring a buying frenzy in marijuana stocks.

“Fundamentally, we believe cannabis is going to be a big business worldwide … not going to be limited to Canada. This will be undoubtedly a market that develops in the United States, it’s already done so on a state-by-state basis here,” Newlands told the Barclays Global Consumer Staples Conference in Boston. “It’s developing around the world, in places like Germany and Australia and other markets. So the whole combination of things is shaping up in a way that this is going to be a big business.”

s2s insurance, eric rahn, insurance for marijuana, cannabis insurance specialists, marijuana businessIf there is increased investment in the cannabis industry, that should translate to growth and that’s good. With said growth comes an increase in potential for product liability claims, and that’s bad. Cannabis related companies can protect themselves with a cannabis product liability policy. A standard commercial general liability insurance policy isn’t adequate protection for the cannabis business owner. General liability polices contain Schedule 1 substance exclusions which would make the policies useless for cannabis/marijuana businesses whose businesses are centered around a federally illegal substance. Cannabis business owners should be working with experienced cannabis specific insurance companies and agents. At S2S Insurance Eric Rahn provides his clients with the experience and expertise to ensure they have a risk management portfolio that makes sense. “As your business grows, has your insurance coverage grown with it?” -Eric Rahn. Don’t find out the hard way that you don’t have the right coverage or the right amount of coverage.

read more at proactiveinvestors.com

Cannabis Insurance An Absolute Must For Cannabis Businesses

As a small business owner there are a number of unanswered questions and unknown threats to your business. Many of these unanswered questions can keep you up at night searching for answers. A question that often doesn’t get asked by small business owners and especially cannabis business owners is how much insurance should I have? Not only should you be asking how much, but you should be asking what type? General liability insurance you get at the insurance provider in your local neighborhood won’t work in the world of cannabis. Cannabis businesses need cannabis insurance. The cannabis industry needs an industry specific insurance product to protect the cannabis industry.

S2S insurance, eric rahn, cannabis insurance, testing lab insurance, who insures the cannabis industryThe cannabis insurance industry serves a specific purpose for the marijuana industry because of the design of the policies. Cannabis insurance does not include the same exclusions as traditional insurance policies. Traditional policies often have exclusions for contraband or illegal substances. For the foreseeable future the entire US cannabis industry revolves around an illegal substance. Marijuana or cannabis is listed as a Schedule I drug right next heroin. Marijuana has been legalized on the state level and is gaining support federally, but that does not change the need for specified cannabis insurance to protect your business.

A recent survey by Manta and Insureon reveals just how many entrepreneurs are putting themselves at risk. Fewer than three in 10 small business owners in the survey have a business owner’s policy, the basic business insurance that covers general liability insurance and commercial property insurance to protect you from loss. Even fewer (21 percent) have errors and omissions (E&O) or professional liability insurance, 17 percent have workers compensation insurance, 6 percent have business interruption insurance, and only 2 percent have cyberinsurance.

No matter what type of business you own, you operate under some degree of risk. Sadly, no business is completely immune to lawsuits. Fortunately, however, a variety of insurance options exist to help protect small businesses.

s2s insurance, eric rahn, liability insurance for marijuana, cannabis insurance specialists, marijuana crop insuranceA question you may have is, what type of cannabis insurance do I need? One of the biggest expenses for most business owners is property. Whether you own a store front, a warehouse, computers, and don’t forget about your inventory, you need to protect it all. Cannabis specific property and casualty insurance pays for damages to your business property resulting from a covered loss. This type of policy protects your place of business but also the contents within your place of business. An example would be if there is a fire in your store and you lose furniture, computers, inventory, it would all be covered up to your policy limits.

There are policies that will also cover expenses that protect your business from additional damage after a loss and the money required to keep operating your business until the damage from the loss is repaired. Property insurance is just one example of the type of insurance you should ask your cannabis insurance specialists about. There are also other types of cannabis specific policies such as product liability, data breach insurance, and errors and omissions. Eric Rahn of S2S Insurance puts it very bluntly, “are you covered if the mud hits the fan?” Don’t find out the hard way that you don’t have what you need or you don’t have enough of what you need, contact S2S Insurance today.

read more at postbulletin.com

Cannabis Insurance Top 5 Mistakes | S2S Insurance

No matter what line of business you are in, you need some form of insurance, that includes cannabis companies. Choosing the right cannabis insurance provider and policy can be a daunting task and mistakes can definitely be made.

Below, Eric Rahn, insurance specialist at S2S Insurance, breaks down common mistakes cannabis related business owners make when choosing an insurance policy and how to avoid them.

1. They don’t purchase insurance at all.

s2s insurance, eric rahn, marijuana insurance, weed, dispensary insurance, cannabis insurance specialistsOne of the biggest mistakes cannabis business owners are making is not having a policy at all. While the wrong policy is problematic, not having any coverage can be devastating to a new or even an established business. Investing in insurance covers the unforeseen and mitigates risk. Whether a cannabis business is faced with vandalism, theft, product liability, employee law suits, management issues, the right policy can save tens of thousands of dollars or even hundreds of thousands of valuable dollars.

2. They don’t purchase cannabis specific insurance.

Cannabis insurance is becoming a very specialized niche in the insurance industry. Not all insurance agents/brokers have the knowledge about the risks in the cannabis industry. Insuring cannabis is not like insuring your house or automobile strictly because of the nature of what you’re trying to insure and how it’s viewed by the government. If you don’t have a policy that is specific to cannabis there may be certain exclusions based on the Schedule I status of cannabis or illegal substances. Those types of exclusions and exceptions can derail a cannabis business owner’s ability to collect on a policy.

3.  They don’t work closely enough with a cannabis insurance specialists

Working closely with someone that knows the cannabis insurance industry is critical when choosing a policy. Cannabis business owners have to ask their agents/brokers questions, lots of questions and the broker/agent needs to be able to answer those questions. Your agent should be asking you questions as well. Risk grows with your business, is your insurance growing with your business? What’s your tolerance for risk? How much can you afford to lose? Are you currently covered to avoid the catastrophic losses that can shut your doors? Those are some of the blunt but required questions cannabis business owners should be discussing and answering with a cannabis insurance specialist.

4. Cultivators fail to buy crop insurance

If you are a cultivator or a grower, you rely on your cannabis crop for your income. Cannabis is agriculture, just like corn, wheat, or soy. Cultivators have to protect their income, therefore they must have cannabis insurance specifically crop insurance. Every year out west in California and Arizona there are wildfires that destroy thousands of acres of land and crops. While we don’t know where and when these disasters are going to strike, history tells us there is a good chance they are going to happen. Cannabis cultivators must be prepared for this unfortunate reality.

s2s insurance, eric rahn, cannabis insurance, liability insurance for marijuana, cannabis recommendations5. Cannabis business owners don’t know whats in their policy

As a cannabis business owner knowledge is power. You have to be aware of the changing laws at the federal, state, and local level. You also need to know your business inside and out. Part of knowing your business is understanding what is and is not in your insurance policy. You have to know what is covered and what is excluded which could include cannabis specific exclusions even within a cannabis insurance policy. If you have cannabis insurance with cannabis exclusions, it may be time to look at another cannabis insurance provider. At S2S Insurance we pride ourselves on our experience and expertise and would be happy to review your policy and your risk exposure to help put your mind at ease.

 

Worker’s Compensation Provides Relief To Cannabis Employees and Employers

Cannabis related businesses are becoming more common as each state passes some form of legalization. The marijuana industry faces it’s own special set of regulatory concerns due to the Schedule I status of the marijuana plant. While the cannabis industry does have special circumstances and restrictions, it does share commonalities with other traditional business models. One of those commonalities is worker’s compensation laws. All states have some form of worker’s compensation requirement and cannabis related businesses must comply with these requirements like any other business.

S2S Insurance, Eric Rahn, Workers compensation, dispensary insurance, cannabis insurance specialistWorker’s compensation, often referred to as worker’s comp, is a state-mandated program required by law to make payments to an employee who is injured or disabled in connection with his or her employment. Each individual state has its own individual worker’s compensation insurance program. Not all states require businesses to carry worker’s compensation insurance, but it is an option. The coverage also benefits employers because the coverage insulates businesses from the possibility of paying out large damage awards to injured employees in civil actions. Depending on the state, the employee may be entitled to medical benefits, temporary total disability benefits, permanent partial disability, permanent total disability benefits, death benefits, and funeral benefits.

The horrific death of Carlos Gabrielli on a Westerleigh construction site should shock us all to the core. His throat slashed by an electrical saw after a slip and fall, he died in an ambulance after his coworkers frantically tried to stanch the bleeding with the shirts off their backs in the immediate aftermath of the gruesome accident.

As the Advance notes in its coverage, this was only the second of three dreadful workplace accidents in Staten Island last week. One day later, a crane collapsed at the construction site of a new Amazon warehouse in Rosebank. One worker’s leg reportedly “snapped in half.” Three days before that, a 25-year-old electrician was knocked unconscious at a construction site in Bloomfield after a small panel explosion exposed him to a 500 volt arc of electricity.

These kinds of workplace accidents, unfortunately, are not rare. On average, 13 workers die on the job every day in this country. Most of these deaths are completely preventable.

S2S Insurance, marijuana insurance, cannabis testing lab insurance, marijuana doctor insuranceThe worker’s compensation system allows your employees to be better employees, and if frees you up as the employer from concerns about facing lawsuits brought by injured employees. Even if the employee is negligent and somehow causes their own injury,  they are still entitled to worker’s compensation benefits. S2S Insurance will always advocate for employers providing safe working conditions for their employees’ well being and also to help minimize risk for the employer. Accidents do happen at the work place, and when they do, S2S Insurance can have you as an employer prepared with a worker’s compensation insurance policy. If you don’t know your state’s policies regarding worker’s compensation or how your marijuana related business could be impacted, reach out to S2S Insurance and we can help you take a look at your potential risks. “Your insurance specialist should be a key advisor to your business, just as your accountant and your attorney”-Eric Rahn of S2S Insurance. 

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