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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.

THC Amounts The Same In Different Cannabis Strains According To Study

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.

THC, Eric Rahn, cannabis insurance specialists, s2s insurance specialists, marijuana chemistryOne 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.

THC, S2S Insurance Specialists, marijuana insurance, cannabis lab testing insurance, understanding marijuana“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.

read more at phys.org

Why Cannabis Lab Testing Insurance Matters | S2S Insurance

As cannabis and CBD oil become more mainstream due to legalization in states across the country, it is important that consumers know what they are consuming. Cannabis lab testing allows for wholesalers, retailers, and the end consumer to trust that what they are selling/buying is what they believe it to be. The cannabis and CBD market is new and growing with increased competition everyday, so it is important that the consumer knows how to distinguish the good from the bad. If you are a person looking for just CBD oil, which lacks the THC or the psycho-active component of cannabis, you do not want to end up with something that has more THC than anticipated. Same goes for someone looking for a product containing THC, you do not want something missing the main ingredient. Cannabis lab testing helps to prevent those types of mistakes from happening, among others.

S2S insurance, cannabis lab testing, marijuana testing, Eric Rahn, who insures marijuanaWhen searching for a CBD or cannabis product, consumers should look for products that have been tested by a third party and not just the company selling it to the consumer. Independent testing companies stake their reputations on each test they produce, so they have no reason to be biased toward manufactures. The job of the third party cannabis lab testing facility is to identify the purity, potency, and other data points to ensure the product is safe for consumption. Most states have requirements for lab testing of all cannabis and CBD products, but these regulations and requirements vary state to state.

Cannabinoid potency data quantifies levels of plant cannabinoids present in cannabis products. Producers are required to obtain potency data for THC and CBD, the two most common cannabinoids. It’s important for consumers to know THC and CBD levels because these will have a strong influence on the effects of the product. For example, some medical patients may want a strain with a high CBD: THC ratio, while adult-use consumers may request the opposite.

According to Confidence Analytics, a state-certified laboratory in Washington, “there are no strong regulations in place about how cannabis chemicals are measured. However, HPLC has emerged as the dominant technique for measuring cannabinoids.” In other industries, there are specific guidelines on testing methods and settings for laboratory equipment.

S2S Insurance can help insure your cannabis testing lab, contact us today!This lack of regulation can lead to discrepancies in potency data and inaccurate cannabinoid data. States are pushing to standardize cannabis testing and ensure that potency values are consistent across laboratories. In Washington state, a group of I-502 accredited laboratories are undergoing a “round robin,” measuring the potency of an unknown cannabis sample and comparing the results between laboratories. If proper testing practices are in place at each laboratory, reported potency data should be similar across the board.

If you are the owner or manager of a cannabis testing lab, you are aware of the importance of what happens in your lab. The flip side of this from cannabis insurance specialist Eric Rahn is “are you prepared to deal with the cost of a mistake”? He follows that statement with “Cannabis is an industry that requires accurate compliance and financial records, cannabis insurance can safeguard you from faulty errors and omissions.” Cannabis labs are no different than any other branch of the cannabis business and need specialized insurance that covers the lab in spite of it’s dealing with cannabis. Cannabis is a Schedule I drug in the US and often can prevent insured business owners from collecting if they don’t have the right policy. Contact an insurance professional at S2S Insurance today.

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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.

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.

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Cannabis Businesses Have To Trust Their Insurance Partners

A federal court in Colorado recently decided a cannabis case that may impact the marijuana insurance industry and cannabis businesses. The case involves a cannabis company suing its insurance company for failing to pay on claims. The insurance company denied the claims that fell under their general liability policy covering the company’s crop and an additional claim for robbery and damages as a result of the robbery. The insurance company actually took a counter-intuitive approach and argued that it’s own policy was an illegal contract based off the federal Controlled Substance Act. The court, correctly, dismissed that argument and sent the parties to arbitration over the remaining claims. s2s insurance, eric rahn, cannabis insurance, marijuana, cannabis businesses, cannabis only insurance

From an S2S Insurance perspective, this case is absolutely infuriating. Cannabis businesses and cannabis business owners have accepted a very challenging endeavor and often have invested their own hard earned time and money. The cannabis industry is complex, involving varied business types, sometimes under one company. Business owners have to deal with owning or leasing buildings, equipment, crops, flowers, oils, edibles, cash management, transportation and more. Cannabis businesses need reliable business partners, not adversaries willing to sabotage their own interest to negatively impact their clients during a time of need.

ArcView Group, which tracks the legal marijuana markets, recently estimated that legal U.S. pot sales could reach $6.7 billion in 2016. As the legal marijuana economy has grown, insurance coverage for this emerging industry has become a hot topic. The U.S. District Court for the District of Colorado in The Green Earth Wellness Center, LLC v. Atain Specialty Insurance Company, No. 13-cv-03452-MSK-NYW, 2016 WL 632357 (D. Colorado Feb. 17, 2016) was recently faced with determining the extent of coverage under a commercial property policy for damage sustained to marijuana plants at a growing facility and addressing whether legal marijuana was even insurable.

Finally, the Court declined to follow Tracy v. USAA Casualty Ins. Co., 2012 WL 928186 (D. Hawaii March 16, 2012) and declare the policy unenforceable as against public policy citing, in particular, the “several additional years evidencing a continued erosion of any clear and consistent federal public policy in this area.”

The Green Earth decision emphasizes the need for insurers writing risks in the developing legal marijuana industry to be as explicit as possible in their policies as to what is and what is not covered.

S2S Insurance, Eric Rahn, cannabis businesses, marijuana liability insurance, cannabis liability insuranceCannabis businesses require an insurance company that knows the marijuana industry and has intimate knowledge of insurance and how the two work together. Some insurance companies try to fit their round insurance mold into the square peg of the cannabis industry, and in doing so cannot protect their clients the way their clients need to be protected. At S2S Insurance we are commercial cannabis insurance experts who work with dispensaries, growers, cultivators, realtors, equipment manufactures, laboratories, and a number of other businesses within the cannabis industry.

When speaking to Eric Rahn of S2S Insurance about this issue he stated, “Your insurance specialist should be a key adviser to your business, just as your accountant and your attorney.” Cannabis businesses and cannabis business owners must take the time to work with an experienced team like S2S Insurance and do a comprehensive risk analysis to protect said business. Your insurance partner should be helping to protect you as you grow, not sue you when you hit a bump in the road. 

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How S2S Insurance Can Help Cannabis Testing Labs

At S2S Insurance we cover more than just marijuana dispensaries, and cannabis grow operations. S2S Insurance covers a multitude of facets in the cannabis industry, including cannabis testing labs. As cannabis use moves from the illicit market into the mainstream retail market, state legislatures are requiring higher standards for the cannabis that makes it to market. Each state varies on what the regulations and requirements are for testing and results, which is why it is important cannabis businesses owners review the regulations with an attorney.

S2S Insurance Insures Cannabis Testing Labs Contact Us Today

S2S Insurance insures cannabis testing labs

The legal cannabis market is big business and cannabis business owners can potentially see big profits once their products clear the legal hurdles. While there is a great deal of pressure on the cannabis business owners such as the dispensaries and the growers, there is also a great deal of pressure on the testing labs. The cannabis testing labs in each state or pressed with having professional, reliable, consistent staff responsible for testing the various cannabis products for market. While cannabis labs are staffed with trusted professionals there is potential for a mistake. California for instance has strict testing requirements that take time to complete. If the labs make a mistake, file an issue on an incorrect report, or omit some form of critical information, the results could be devastating to the industry in that state. A mistake in the lab could cause production delays, could result in a recall, and possibly even a class action lawsuit. If a testing lab is the cause of any of this due to an error or omission, that lab may be liable for fines and damages.

One in five batches of marijuana has failed laboratory testing since new state safety requirements kicked in July 1, according to data from the California Bureau of Cannabis Control. Failures have been triggered by inaccurate labeling or contamination from pesticides, bacteria or processing chemicals.

Those testing requirements and results have left some retailers with severely limited inventory over the past few weeks, as cultivators and product manufacturers scramble to get compliant products to market.

S2S Insurance, who insures the marijuana industry, liability insurance for cannabisThe new testing requirements have also created backlogs at busy labs. The state has licensed just 31 testing labs, most located in Northern California, and many of them aren’t yet taking customers. As a result, Rinella said cannabis safety tests are taking between one and two weeks.

As previously stated, S2S Insurance can handle all of your cannabis business insurance needs whether you are a dispensary or a cannabis testing lab. If you own a cannabis testing lab it is crucial to insure against liability and professional liability. Put another way you should look for coverage against liablity incurred as a result of errors and omissions in performing professional services. The members of your staff are trained professionals and in some instances may be licensed, which means they are held to a higher standard. Due to the higher standards attributed to your staff if they were to commit an error, there may be potential for a professional liability claim. As always review your policy with one of the experienced agents at S2S Insurance and with an attorney as coverage limits do apply.

read more at mercurynews.com

Cannabis Testing Facility Concerns Prevent Sales

who insures the cannabis industry, testing lab insurance, liability insurance for marijuanaAs more states legalize marijuana for medicinal and recreational purposes, safety of  the product will become more of a concern. States like Michigan are tackling the issue of safety head on by requiring cannabis products be tested by a licensed cannabis testing facility before hitting the open market. The use of a licensed cannabis testing facility is a move to protect consumers from potentially harmful products that could have impurities or concentration levels that are too high, or even too low. This requirement of using a cannabis testing facility creates a level of accountability for cannabis businesses in the medical marijuana industry in the state of Michigan.

The state of Michigan is facing a dilemma with their medical marijuana requirements because the cannabis testing facilities available to test cannabis products have not obtained licenses. With no licensed cannabis testing facilities available in the state, other businesses that will transport and provide cannabis to patients are unable to legally operate. Michigan’s system for legalized medical marijuana relies on the ability to have all products tested at a licensed cannabis testing facility, and if products have not been tested, they cannot be distributed.

However, a key step in the state’s new system — a safety compliance facility where medicinal marijuana would be tested — has not yet been licensed in Michigan.

“Since none of those have been licensed yet, there can’t be a complete system yet,” Harns said.

That means none of the newly licensed operators can legally provide medicine to patients under the new system.
Operators approved for new licenses can wait to pay the $48,000 fee that would make their new license active, and can continue to operate under the second set of emergency rules the state put in place in May, Harns said. However, once an operator pays the $48,000 fee to make the license active, they’ll have to comply by the new medical marijuana rules, Harns said. That means they can’t distribute product to medical patients until their products have been sent to a licensed testing lab to ensure safety of the product.

Cannabis testing facilities in the state of Michigan carry a great deal of responsibility for the entire medical marijuana industry in that particular state. As a business owner of a cannabis testing facility that is relied upon to supply a form of medicine to patients, it is critical that a risk management plan is set in place. Cannabis testing is complex and presents the possibility for errors. Errors in testing can lead to a halt in operations, recalls, and law suits. If a cannabis testing facility makes a mistake it can cost the owner of that facility large sums of money to resolve.

marijuana business, cannabis recommendations, insurance for cannabisBusiness owners should look to mitigate risk by working with a knowledgeable insurance company that can help guide them through the process of choosing the best insurance policy. A good insurance policy can help protect a cannabis business owner from financial losses due to errors, mistakes and issues in compliance. Without a well thought out risk management plan marijuana business owners could be facing financial losses which include fines from the state, revenue loss due to work stoppage and possible legal fees. It is also important to remember that regardless of what type of cannabis insurance policy you have, coverage limits will apply.  You must read your policy with both your agent and your attorney to determine what your coverage consists of.

read more at 420intel.com

Cannabis Testing is Not An Exact Science

As the interest in legal cannabis grows, government agencies and consumers alike will want to know what they are consuming. Cannabis testing of products is becoming a standard in all states that legalize medicinal use or recreational use marijuana. The standards for this testing vary state to state. In some states cannabis testing is carried out similarly to that of pharmaceuticals. Some states are testing for purity, contaminants, and potency, while others are testing for only 2 or 1 of those elements.

Why Cannabis Testing Labs Need Insurance, medical marijuana, adult-use marijuana

Cannabis Testing varies from state to state

The cannabis industry has looked to the federal level for guidance on cannabis testing, but have received no help from federal agencies. Cannabis carries a schedule I designation under the Controlled Substances Act, designated by the DEA thus making it an illegal drug. Because of the illegality of marijuana federal agencies refuse to issue any standards regarding cannabis testing or any other form of regulation dealing with the drug. The federal government has taken a hard stance that even with states legalizing both medical and recreations use of the plant, federally these agencies see the drugs as an illegal substance. The federal government’s stance on the issue leaves states to individual mandate testing as they see appropriate for their states and consumers.

State regulators have had no guidance from the federal agencies that usually set health and safety standards for agriculture, food and medicine because the federal government considers marijuana to be illegal. They have been hampered by the fact that there’s little research on how marijuana tainted with potential toxins affects humans, partly because the federal government funds limited marijuana research. And they’ve also had to adjust testing regulations to reflect the costs and amount of tests fledgling legal marijuana markets can handle.

In Oregon, for instance, initial rules rolled out in October 2016 for marijuana testing and laboratory accreditation contributed to backlogs at laboratories and shortages of product on dispensary shelves. Regulators, seeking to ease the pressure on the market, issued new rules that December that reduced the number of times a harvest, or a batch of chocolates or candies, would have to be tested.

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Cannabis testing helps to protect the cannabis business owner

As insurance specialists, we at S2S Insurance want to provide cannabis business owners with the necessary information to make wise decisions that will impact the success of their business. We would tell all businesses owners to become aware of the requirements in their particular state regarding testing. Understanding the regulations in your state early in the business planning process can help a business owner begin to estimate costs. Laboratory testing of any kind is never inexpensive and cannabis testing is no different. Cannabis business owners should not overlook this requirement if it is a state mandate. Business owners should also be aware of the risks that are associated with cannabis testing and protect themselves. While cannabis testing is meant to protect the end consumer mistakes are made. Testing is complicated and requires the upmost attention to detail which creates room for error. The margin for error increases as the requirements become more stringent. Business owners should be protect themselves with product liability insurance that can help mitigate risk in case of issues of recalls, production stoppages, and law suits.

read more at post-gazette.com