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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

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.

read more at hightimes.com