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Opioid Epidemic Presents Lessons For Cannabis Businesses

The opioid epidemic has impacted nearly every state in the union. People are overdosing and in many cases dying by the thousands every day because of opioid abuse. Statistics in many recreational marijuana states show that the rate of opioid overdose deaths, along with the amount of marijuana prescriptions being filled, have lessened as of late. Many cannabis legalization advocates use these statistics to leverage their argument for legalization which would benefit the cannabis industry. While there is some positive for the cannabis industry there are lessons to be learned by the cannabis industry from the manufacturers of these opioid drugs. Opioid manufacturers are being sued by states, municipalities, and various advocacy groups across the country in class action law suits. The drug manufacturers are being sued for contributing to the growing opioid crisis and misleading the public on the addictive nature of the drugs and pushing them as an effective way to treat chronic pain, contrary to overwhelming evidence.

s2s insurance, eric rahn, medical marijuana insurance, opioid epidemic, cannabis insurance, marijuana patient dataYou may be asking what is the connection to cannabis businesses and how does it tie to cannabis insurance? While cannabis does not seem to create the same issues as opioids, there is no guarantee or sure way to know how people will respond when they take any substance. If consumers and or the public feel that they have been harmed in any way due to consuming cannabis manufactured and sold legally, there is potential for a claim against the dispensary, the cannabis lab testing facility or the manufacturer. Professional liability insurance, also known as errors and omissions (E&O insurance), is a special type of coverage that protects cannabis companies against claims that a service your company provided caused your customer or client to suffer financial harm due to mistakes on your part, or because you failed to perform some service. If one of your employees gives a customer the wrong information about a product, or a product is mislabeled, or if any number of things occur that could lead to perceived harm, your business could be held liable for those damages.

A coalition of 41 states’ attorneys general have served five major opioid manufacturers with subpoenas seeking information about how these companies marketed and sold prescription opioids. The coalition is also demanding documents and information related to distribution practices from three drug distributors.

The investigative subpoenas and document requests were sent to pharmaceutical manufacturers Endo International, Janssen Pharmaceuticals, Teva Pharmaceutical Industries Ltd./Cephalon Inc. and Allergan. The group also served a supplemental investigative subpoena to Purdue Pharma. Documents were also requested of three major pharmaceutical distributors: AmerisourceBergen, Cardinal Health and McKesson.

S2S Insurance, cannabis insurance specialists, marijuana insurance, Eric Rahn, opioid epidemic

The fight against opioid manufacturers is also extending to local municipalities, who are waging their own wars against the deadly epidemic. Bensalem Township is bringing claims against several drug companies and their subsidiaries, including Purdue Pharma, Teva Pharmaceuticals, Cephalon, Johnson & Johnson and Endo Pharmaceuticals. Similar litigation is already underway in Oklahoma, Ohio and Mississippi. However, in Philadelphia, construction workers are especially susceptible to injury and, as a result, often turn to opioids for rehabilitation, Dougherty said. But addiction is never far behind.

S2S Insurance Specialists are aware of the risks that may be out of your control as a cannabis business owner. It is important the business owners work with cannabis insurance specialists who understand the landscape. Eric Rahn of S2S Insurance asks, “if the crap hits the fan, are you prepared or will you be left holding a crap covered fan?” Contact Eric or any of the specialists at S2S Insurance today.

read more at policymed.com

Directors and Officers Insurance Integral In S2S Insurance Risk Management Strategy

As a member of the executive leadership team of an organization, there are certain responsibilities that fall under your umbrella whether they are explicitly stated or implied. As an owner of your business or even a board member of an organization, you are responsible for the management of your company’s affairs. That responsibility comes with the possibility of being sued if something is mishandled and leads to damage or injury. This is why we at S2S Insurance strongly urge business owners and managers to obtain directors and officers insurance. The cannabis industry is steadily growing as more and more states legalize cannabis. The growth of the industry requires more advanced risk management strategies due to the advanced risks that exist.

Companies large and small, public and private, for-profit and nonprofit all face director and officer (D&O) litigation risks. In a 2016 survey by Chubb, the average reported loss from a directors and officers judgment was $387,000. No matter how successful your cannabis related business is, the reality is that a substantial financial loss such as $387,000 could destroy your company instantly, or set you back to a point that may be difficult to recover from. If you are a director or officer at your organization, you could be sued for any number of reasons, including breach of fiduciary duty resulting in financial losses or even bankruptcy, fraud, failure to comply with workplace laws, lack of corporate governance to name a few. These suits can come from a variety of places including but not exclusive to employees, vendors, competitors, investors and of course customers.

s2s insurance, eric rahn, cannabis insurance specialists, directors and officers insurance, dispensary insurance, marijuanaA board member at GlaxoSmithkline is one of those being sued by the US state of Massachusetts over the US opioid addiction crisis.

The lawsuit seeks damages from 16 individuals, many of whom are members of the Sackler family, and Purdue.

“The Attorney General claims Purdue acted improperly by communicating with prescribers about scientific and medical information that FDA [the US Food and Drug Administration] has expressly considered and continues to approve,” it said.

In March a study by a federal agency found that opioid overdoses were up 30% over the previous year in the US, with Midwestern states having the highest jump in cases.

The Massachusetts lawsuit alleges that Purdue Pharma, the company behind the drug OxyContin, “created the [opioid] epidemic and profited from it through a web of illegal deceit”.

Ms Lewent was named in the lawsuit as one of those “who oversaw and engaged in a deadly, deceptive scheme to sell opioids in Massachusetts.”

s2s insurance, eric rahn, cannabis insurance, directors and officers insurance, testing lab insurance, cannabis businessNo business owner wants to find him or herself in court dealing with a directors and officers law suit, but there are precautions every business owner can take to help protect him or her self and their business in these situations. It is critical that as a director or officer of your company you consider investing in D&O insurance. Directors and officers liability insurance protects your personal assets along with your spouse’s if you are sued for mishandling the management of your company. S2S Insurance specialist, Eric Rahn, states “don’t make the mistake of assuming you are protected under your general liability policy when it comes to D&O insurance.” You should always review your policy with one of the marijuana insurance specialists at S2S Insurance and your attorney. Contact us today and we can begin to assess your risk and provide options to help you maintain a successful business no matter what might occur down the road.

read more at bbc.com