The battle to win marijuana grow licenses in states like Nevada have resulted in some very aggressive legal challenges. One such example in Las Vegas highlights the advantages of having cannabis D&O Liability Insurance coverage.
Michael and Robert Frey are joint owners with Verano Holdings of a 50,000 acre cannabis cultivation and processing facility in Nevada called Naturex which runs the Zen Leaf dispensaries in Las Vegas. Verano Holdings is one of the largest cannabis companies in the country with marijuana grow licenses in multiple states.
According to case filing, the Frey brothers are saying that they completed paperwork for additional grow licenses in Nevada and gave it to Verano to submit. Verano is accused of using the paperwork completed by the Frey brothers as a reference to then completing separate paperwork which they filed with Nevada to get their own licenses independent of the Frey brothers.
Verano CEO George Archos said the company is aware of the complaint but has not had an opportunity to review the claims.
“Based on what we know of the allegations, however, we do not believe the complaint has merit,” Archos said in a statement to the Las Vegas Review-Journal. “We intend to defend aggressively against these claims.”
“Defendants claimed the applications would be incomplete without locations specified in the application materials — albeit an incorrect analysis and unsubstantiated excuse proffered by Defendants — to which plaintiffs reasonably relied on such misrepresentation at the time,’’ the lawsuit states.
Verano “intentionally and maliciously usurped the opportunity available and belonging to Naturex and instead utilized the Naturex materials for its own entity defendant Lone Mountain to apply without including plaintiffs and without informing plaintiffs of defendants’ intended course of action,” the lawsuit states.
The actions of officers and directors of any company can lead to lawsuits that D&O Liability insurance is intended to protect a company from. Marijuana legalization is spreading fast and investors are clamoring to get a foot hold so they can prosper from the quickly growing industry. Finding the right sort of liability coverage in the cannabis can be tough though, so get in touch with David Rahn or Eric Rahn of S2S Insurance, your cannabis insurance specialists, to find out your alternatives.
https://www.s2sinsure.com/wp-content/uploads/2019/02/las-vegas-marijuana-dispensary-sues-verano-holdings-for-marijuana-grow-licenses.jpg333500Eric Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgEric Rahn2019-02-21 13:54:092019-02-20 14:25:21Seeking State Marijuana Grow Licenses Highlights the Need for D&O Insurance
Opinions on the emerging cannabis industry are so numerous that they are beyond my ability to track them. Everyone is either claiming to be an authority on the business of legal marijuana, or are striving to become the authority. The truth is that nobody is a complete authority on legal cannabis. It is still too new of an industry, and the proof is how inconsistent the rules and regulations pertaining to marijuana/hemp/CBD vary from state-to-state, and within each state! One moment Michigan has a restricted medical marijuana program, the next moment they have legalized adult-use marijuana. How can anyone be an authority, when fragmented state and federal regulations continue to evolve?
You should all know by now the largest barrier to entry into this industry is the Schedule 1 status of cannabis. This particular legal barrier unavoidably looms in our background everyday. Attending B2B cannabis conferences, from smaller more intimate ones such as C-LAB events to massive conferences like MJBiz, I consistently listen to speakers, vendors and attendees bring up the same topics. All of these cannabis conferences serve to educate and communicate, but no matter where I go people still talk about banking restrictions, merchant service problems, taxes being too steep to turn a profit due to IRS Tax Code 280E, inability to engage in interstate commerce and all sorts of marketing challenges. For us of course, it is the barriers to suitable marijuana insurance policies that we focus on the most.
How long does it take for a state regulated body to be funded, staffed, implemented, grow and stabilize? Depending how fast current laws are adopted or changed, it will take a long time and a lot of discussions as to how the cannabis Industry, the federal government and the cannabis approved states will come together to implement best in classlicensing and regulations, product quality standards, taxation and enforcement. Through this evolution of an industry, we will witness successes and failures along the way.
Look at Massachusetts, voters legalized adult-use marijuana in 2016, and it took over two years for sales to begin with only two dispensaries allowed to open by December of 2018. Florida has multiple lawsuits filed over unconstitutional medical marijuana laws that do not match what voters approved in 2016. State laws are changing on a regular basis and have not even stabilized in states like Colorado and Washington which began selling adult-use cannabis in 2014 and medical marijuana well before that.
The evolving marijuana industry is full of so many financial and regulatory uncertainties that insurance policies for cannabis companies are not consistent from one carrier to another. Marijuana insurance companies like S2S Insurance Specialists have to stay current with many state and federal regulations. Federal prohibition continues to plague the cannabis insurance industry by preventing it from operating in a free market environment. These restrictions have made most big insurance companies reluctant to enter the cannabis market place, therefore we are restricted to a couple of surplus lines carriers.
Best practices in business are still evolving in the cannabis space. The time for cannabis entrepreneurs to build, scale and stabilize their businesses is now! We have all read and heard about the growth projections of the cannabis industry. Projections that cannabis will represent the next $20 billion industry are probably conservative. We will eventually rival the multi-billion dollar snack, alcohol and pharmaceutical industries. As companies scale up, management teams become the forefront of any successful operation.
Most professionals I have met have pivoted into the cannabis Industry from other specialized professions. Like myself, they see an opportunity to do something new and exciting. We need to bring the best of our skill sets to this very young and emerging industry. Come into this industry with your eyes wide open. The opportunities in cannabis are great, but the competition is fierce. It takes more than just a love of marijuana or the passion of wanting to see the social injustice of marijuana prohibition come to an end. It takes a strong understanding of the fundamentals of business. It takes organization and constant research to understand the next big trend or new state mandated rules.
As cannabis insurance specialists, David and I stay current on industry trends, data points, cannabis research and the full spectrum of the supply/distribution chain. The biggest problem we all face in this young emerging industry is the lack of credible and actionable data. Like most institutional markets, insurance relies heavily on the data acquired across the industry in order to rate, compare and assess risk. We also follow current industry news and insurance trends in cannabis.
The most recent industry change was the passing of the2018 Farm Bill. It allows for broad cultivation of hemp, not simply pilot programs for studying market interest in hemp-derived products. Its language clearly allows for the transfer of hemp-derived products across state lines for commercial use and other purposes. It also puts no restrictions on the sale, transport, or possession of hemp-derived products, so long as those items are produced in a manner consistent with the law.* Now that hemp will be descheduled, along with hemp derived CBD, hopefully insurance for these products will be more widely available and competitive. There is hope that states will offer state sponsored crop insurance for hemp growers.
Another big trend we are seeing is the need for companies to raise capital for future growth. Many cannabis companies are looking towards the Canadian stock exchanges such as the TSX, VSE and CSE to raise funding. When companies engage in selling shares of stock to the public, there is a greater need for Directors and Officers Liability insurance (D&O). A Directors and Officers Insurance policy protects you as a director or officer of the company if your actions negatively affect the company’s profitability or if the company is sued because of your actions. The policy will pay for legal damages and fees. D&O helps preserve the company’s cash flow against expensive legal bills. These sorts of risks will become even more apparent as the number of cannabis stocks continue to grow and the amount of active investors and traders diligently following these companies hope to capitalize on the market by challenging management and business development goals.
We continue to follow various insurance claims affecting the cannabis Industry. We are seeing claims in the product sector, D&O claims from shareholders, employment dismissal issues and crop/property claims due to the fires on the west coast. California’s gray market persisted for 20 years, but over the summer it became mandatory that any cannabis product intended for commercial sale undergo product safety testing by state certified labs. A Sacramento testing facility that had serviced the industry for years was just suspended for failing to test for 22 pesticides. The cannabis was distributed to California consumers and the recall will cost many companies in legal fees, fines and potentially their licenses while the state courts figure out who is at fault for the lost revenues. Stories like this will hopefully start to weed out the bad actors in the industry.
We highly recommend that management review their insurance policies, policy limits and deductibles every six month to make sure that as your business grows, you are maintaining adequate coverages. Many things change in the course of a year, it is important to constantly manage your risk assessments. S2S Insurance Specialists are dedicated to helping you insure, from seed to sale, all your cannabis, CBD and hemp insurance needs.
Reach out Eric Rahn and David Rahn to find the cannabis insurance policies that are most suitable for your company.
https://www.s2sinsure.com/wp-content/uploads/2018/12/hemp-field-3661214_960_720.jpg720960Eric Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgEric Rahn2018-12-18 13:53:072018-12-18 14:08:39The Evolution of the Emerging Cannabis Industry
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.
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”.
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.
CBD, there are a lot of questions about what it is, what it can do, and whether it is legal. We’ll help clarify some of this for you to help you make a decision as to whether it is right for you. What is CBD? CBD is officially known as cannabidiol, it is typically extracted from the cannabis or hemp plant. One of the main keys to the extract is that it is not psychoactive because it does not contain tetrahydrocannabinol or THC. Without THC, there is no high. The ability to use cannabidiol without getting high makes it an attractive option for many that seek the medical benefits of cannabis and hemp, but want to avoid the high for various reasons.
Cannabidiol oil is steadily gaining momentum in the health and wellness world, because there is evidence that suggests it may help treat a variety of ailments from chronic pain to anxiety. There is some controversy around CBD oil because of the stigma attributed to recreational marijuana use. There is growing awareness about the possible health benefits of this natural elixir.
Until now, CBD has existed in a kind of legal gray area: In many places it is not necessarily legal, but it’s also not illegal. But this month, the passage of the 2018 Farm Bill will remove hemp and CBD from the Drug Enforcement Administration’s list of “Schedule 1” controlled substances, making it an ordinary agricultural commodity and allowing it to be legally sold in all 50 states.
With laws around it relaxing, CBD is going mainstream. Beverage giants like Coca- Cola KO, +2.52% and Pepsi PEP, +0.78% are eying CBD-infused beverages as consumption of traditional soda declines. The market for CBD products is anticipated to grow to more than $2 billion in total sales by 2020. People are using CBD for anxiety, sports injuries, and face serums, and even giving it to their pets.
Cannabis plants contain hundreds of chemical components called cannabinoids, but the two main ones are delta-9-tetrahydrocannabinol (THC) and cannabidiol. THC is an intoxicating substance that interacts with endocannabinoid receptors in a user’s brain, activating reward mechanisms that produce dopamine and get a user high.
CBD does not affect these receptors the same way and, therefore, does not have a psychoactive effect. Like THC, the extract can be consumed in liquid and other edible forms or through a vape pen.
While CBD is advertised to treat insomnia, chronic pain, depression, and anxiety, there is little scientific evidence to prove it is effective for these ailments. Cannabidiol may be effective for depression and anxiety treatment, studies on rats have shown, but there’s little research on the effects of the extract on humans.
If you are looking into starting a cannabis related business around cannabis and hemp extracts, your need for a risk management strategy does not change just because the product does not have THC in it. Business owners should reach out to a cannabis insurance specialist like Eric Rahn of S2S Insurance Specialists to help with your insurance needs.
https://www.s2sinsure.com/wp-content/uploads/2018/10/MW-GS541_CBD_va_20181026172655_ZH.jpg501890David Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgDavid Rahn2018-11-19 11:22:042018-11-16 20:13:08CBD And What You Need To Know About it | S2S Insurance Specialists
There are articles and news reports across the internet that recognize the money making potential in the legal cannabis industry. In the US, in states that have legalized marijuana in some form, people have invested heavily in the industry banking on big returns. People working in the trenches of the industry are starting to see early returns on their investments and they have the cash to prove it. While it is good to be rolling in dough, it is not ideal, and leads to some serious problems.
Most banks, large and small are not willing to extend their services to cannabis related businesses because of the plants status with the US government. Cannabis is listed as a Schedule 1 controlled substance in the Controlled Substance Act. As long as this federal law lists the drug as a Schedule 1 controlled substance, the financial industry will face significant challenges all the way from banking to merchant services by risking running afoul of federal law if they work with weed related businesses. The problem is not limited to the United States, it is impacting Canada as the entire country has legalized the use and sale of the drug.
Even though Canada legalized recreational marijuana and opened the door to a flurry of business activity, big banks in the United States and Canada are keeping the industry at arm’s length because of pot’s muddy legal picture in the United States.
Cannabis, while legal for recreational use in nine US states, and Washington D.C., remains illegal under US federal law. American banks have largely stayed away from providing services to the industry because federal regulations prohibit lenders from working with any business that deals in illegal drugs. Lenders could face money laundering charges in the United States if they do.
But banks could be missing out on a bonanza. The marijuana industry is expected to grow substantially in the next five years, with sales in the United States expected to hit $23.4 billion by 2022, according to cannabis market research group Arcview. Canadian sales are expected to hit $5.5 billion.
Still, most of the largest banks remain on the sidelines for now — even in Canada, where banks have to worry about potential compliance issues abroad. The American Bankers Association, the US industry’s powerful lobby, has said it wants Congress to resolve the conflict between federal and state laws so banks aren’t stuck in the middle, though it doesn’t have a position on legalization itself. Right now, banks that do decide to take a chance and quietly work with marijuana businesses are expected to file suspicious activity reports for every transaction related to those accounts — a huge and potentially expensive logistical headache. TD Bank (TD), the Royal Bank of Canada and Bank of Montreal (BMO), all of which have an international presence, declined to comment for this story.
As long as cannabis is considered a Schedule 1 controlled substance there will be an inherent risk to working in the cannabis industry. Not only are there legal risks, but because normal financial services are not available, you’ll be dealing in cash which posses it’s own set of problems. Your business could be targeted for theft and robbery, which may come with property damage and more. If you are considering or already involved in a cannabis related business, you need a risk management strategy. Reach out to S2S Insurance Specialists and talk with Eric Rahn about your business and risk management strategies.
https://www.s2sinsure.com/wp-content/uploads/2018/10/s2s-insurance-eric-rahn-cannabis-dea.jpg525700David Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgDavid Rahn2018-11-14 14:20:592018-11-12 09:58:27American Banks Missing Out On Legal Cannabis In Canada
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.
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.
Having 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.
https://www.s2sinsure.com/wp-content/uploads/2018/10/171025131015-pot-jobs-780x439.jpg439780Eric Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgEric Rahn2018-11-06 11:22:172018-11-05 09:39:34Cannabis Industry Top Paying Jobs
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.
Recently, 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.”
In 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.
Now, 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.
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.
https://www.s2sinsure.com/wp-content/uploads/2018/11/New_office.jpg27363648David Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgDavid Rahn2018-11-01 10:05:392018-11-05 09:39:34The SEC May Find Your Marijuana Company Negligent in Cyber Fraud Cases
There are a number of different reasons people are happy to see views on cannabis change. Some people like the idea of being able to use the plant for recreation without having to worry about breaking the law. Other people see the potential financial boom that could come from legalization and want to be in on the rush before the rest of the investing world catch wind. There are also those who see cannabis as a medical wonder drug. Medical cannabis has been shown as a possible aid to a number of different ailments and medical problems. Legalizing medical cannabis provides an option to people that want to try non traditional medicines to help with their various medical issues. Many states that are legalizing medical cannabis have strict rules in regards to access. There are also a number of things a new medical cannabis user should know before going to their local dispensary. Here are some tips for those new to medical cannabis.
For starters, always make sure to bring your medical cannabis card with you when going to a dispensary. In states where patients must register to be able to obtain cannabis via a dispensary we highly recommend that you keep your identification card with you at all times. No dispensary in places where registration is required by law, will sell any cannabis to anyone that does not have the appropriate credentials. In fact, you won’t even be able to get through the front door.
Also, once you have your card do your best to avoid delaying having it renewed. Since most locations where medical cannabis is allowed require that you make a follow-up appointment with your doctor in order to re-register, you will want to plan ahead of time in order to avoid any lapses in coverage that could potentially leave you without access to your medicine. We would recommend beginning the renewal process at least 30 days out from your card’s expiration date to hopefully sidestep any snags.
Be sure to do your homework before you even go to the dispensary for the first time. While your friendly local budtender will be happy to help with any questions that you may have, it is always a good idea to do some research with regards to what type of cannabis strains and/or products would work best for the condition(s) that you are looking to treat. This way you will be well prepared for your first dispensary shopping experience, making it easier for everyone involved. If the dispensary you choose has a website, be sure to check it out as most will have at least some of their inventory available for you to peruse ahead of time.
If you are looking to get into the cannabis business and you think that medical cannabis is the way to go, don’t forget about cannabis insurance. States have strict rules regarding testing, labeling and who you can sell to. It is not only important to know these rules but protect your cannabis business with a marijuana insurance policy in case something out of your control happens and your faced with sanctions from a state agency or a law suit from a disgruntled customer. Eric Rahn and the professionals at S2S Insurance Specialists can help you put together a risk management strategy to protect you and your cannabis business investment. Contact them today!
https://www.s2sinsure.com/wp-content/uploads/2018/10/medicinal1.jpg353628David Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgDavid Rahn2018-10-30 10:41:132018-11-05 09:39:35Medical Cannabis and Tips On How To Use It
The cannabis industry in the United States and across the world continues to expand at a rapid pace. Canada, Jamaica, Argentina, Spain, The Netherlands, even Russia have either decriminalized cannabis for personal use or legalized recreational use, growing and the sale of cannabis. There are many other countries and regions where legalization and decriminalization are happening as well. As the world becomes more accepting of cannabis and begins to remove the stigma, we should take a closer look at the history of cannabis.
Much of the reasoning behind the legalization of cannabis deals directly in the history of cannabis. Cannabis is not something that hippies discovered for the first time during Woodstock. The use of cannabis in medicine can be tracked as far back as 5,000 years ago to Asia. It showed up in the Americas with the first European settlers because of it’s textile uses. Below is an excerpt from “A Complete History of Marijuana, According to Scientists” found at Marijuana Moment.
Before its medical properties became known, the fibrous plant was commonly used for textile manufacturing. Archeologists have discovered “sophisticated plaited basketry” based on cannabis at Czech Palaeolithic sites, for example.
“In fact, it has been referred to as the oldest known cultivated fibre plant and even today it is used as a constituent of fishing nets,” the researchers, who are from Italy and Sweden, wrote.
There are a couple schools of thought on this topic. But from a “Western-centered viewpoint,” researchers generally believe that natural events caused the plant to be accidentally burned, inadvertently revealing its “psychotropic nature.”
There’s certainly room for debate on this, but the researchers said that the timeline started about 5,000 years ago in China. The so-called “father” of Chinese agriculture, emperor Chen Nung, included the plant in the first Chinese pharmacopeia. That text said cannabis was prescribed for “fatigue, rheumatism and malaria.”
Marijuana didn’t show up on American shores for thousands of years after it was first discovered. It was “not known in the Americas until the ar
rival and settlement of the first European colonists,” according to the researchers. “During this period [cannabis] was used primarily for the strength and the resistance of its fibres.”
Swedish botanist Carl Linnaeus coined the term “Cannabis sativa” in the middle of the 18th century, the researchers wrote. Subsequently, French naturalist Jean Lam
ark distinguished between Cannabis sativa and Cannabis indica, writing that the former was a European plant and the latter came from “Indian origin varieties.”
This snippet of the history of cannabis tells us that it has been around a long time with many uses and possible benefits. What the history of cannabis also tells us is that we are likely only scratching the surface as to what the full benefits of the plant are. Due to the Schedule I status of Cannabis, which makes it a controlled substance in the United States, there has been limited ability for scientists to study cannabis. Legalization of cannabis allows for scientists to take the history of cannabis and use modern scientific testing technology and knowledge to understand the plant and its benefits better. At S2S Insurance Specialists, we not only want to help you with your risk management needs, but we are also cannabis legalization advocates. A better understanding of the history of cannabis, the benefits of cannabis and the legal implications of cannabis, assists us in helping our clients in this complicated field. Contact Eric Rahn today for your cannabis business risk management needs.
https://www.s2sinsure.com/wp-content/uploads/2018/10/s2s-insurance-eric-rahn-history-of-cannabis.jpg405720Eric Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgEric Rahn2018-10-26 09:10:422018-11-05 09:39:35The History of Cannabis – A Quick Look At The History of the Plant
If you are in the cannabis industry chances are you know what the letters THC stand for. Tetrahydrocannabinol, also known as THC, is the principal psychoactive constituent of cannabis. THC is specifically listed under Schedule I by US federal law under the Controlled Substances Act for having “no accepted medical use” and a “lack of accepted safety.” According to Gallup’s most recent poll, 66% of American voters and everyone in the cannabis industry in the United States or worldwide, will tell you they strongly disagree with this classification of THC and the reasoning behind it. In order to change the United States government’s view on THC and other countries, it is important to understand this component of cannabis.
One way to begin to have a better understanding of THC is to figure out how much of it is in cannabis? That is exactly what research from UBC’s Okanagan campus set out to do and was able to come to a conclusion. The research from the Canadian university determined that many strains of cannabis have virtually identical levels of tetrahydrocannabinol (THC) and cannabidiol (CBD), despite various claims and names given in the unregulated and regulated markets.
“It is estimated that there are several hundred or perhaps thousands of strains of cannabis currently being cultivated,” says Professor Susan Murch, who teaches chemistry at UBC Okanagan. “We wanted to know how different they truly are, given the variety of unique and exotic names.”
Cannabis breeders have historically selected strains to produce THC, CBD or both, she explains. But the growers have had limited access to different types of plants and there are few records of the parentage of different strains.
“People have had informal breeding programs for a long time,” Murch says. “In a structured program we would keep track of the lineage, such as where the parent plants came from and their characteristics. With unstructured breeding, which is the current norm, particular plants were picked for some characteristic and then given a new name.”
The research shows that most strains, regardless of their origin or name, had the same amount of THC and CBD. They further discovered that breeding highly potent strains of cannabis impacts the genetic diversity within the crop, but not THC or CBD levels.
“A high abundance compound in a plant, such as THC or CBD, isn’t necessarily responsible for the unique medicinal effects of certain strains,” says Mudge. “Understanding the presence of the low abundance cannabinoids could provide valuable information to the medical cannabis community.”
Cannabis has been around a long time, but many scientists and cannabis enthusiasts believe there is a great deal we still don’t know about the plant. An understanding of the amount of THC in various strains is not only interesting but can help states and countries make more sensible laws when it comes to regulation. This information can help cannabis testing labs establish more accurate baseline amounts of THC when testing cannabis for various reasons. At S2S Insurance Specialists we not only provide risk management strategies for cannabis companies, we are advocates for the legalization and safe use of cannabis. Contact Eric Rahn of S2S Insurance today for assistance with your cannabis business risk management strategy.
https://www.s2sinsure.com/wp-content/uploads/2018/10/thcamountsid.jpg321450Eric Rahnhttps://www.s2sinsure.com/wp-content/uploads/2019/04/logo.svgEric Rahn2018-10-23 16:21:412018-11-05 09:39:35THC Amounts The Same In Different Cannabis Strains According To Study
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S2S Insurance Specialists LLC is an international insurance intermediary and brokerage firm, specializing in the placement of insurance and other risk insurance services to businesses operating in the Medical And Recreational Marijuana Industry.