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Property Insurance Key Component to Protecting Cannabis Businesses

Cannabis business owners are having financial success which is a the reason they are in the business of cannabis. The benefits of financial success are obvious, but there is a stark downside as well. Cannabis business owners have too much cash. The federal government considers marijuana a Schedule I drug along the same lines as heroin, therefore businesses that profit from the sale of marijuana and marijuana related products such as edibles are technically in violation of federal law. With that in mind, you may be wondering where cannabis property insurance comes into play? The connection is simple, cannabis businesses have lots of cash on hand due to banks and financial institutions refusal to do business with the cannabis industry. Criminals love cash. When you combine lots of cash on hand with criminals. there is a legitimate cause for concern for cannabis business owners.

s2s insurance, eric rahn, cannabis insurance, marijuana property insurance, cannabis insurance specialistsAs long as the federal government continues to consider cannabis an illegal substance. the problem of too much cash will continue to exist for cannabis business owners. Criminals and thieves see a cannabis dispensary as a piggy bank ripe for the taking. Often marijuana dispensaries have inadequate security systems and are often left completely unattended after business hours. Seasoned criminals may be able to get in and out of your establishment quickly causing minimal damage, while less experienced criminals may cause twice as much damage to the property and products on site. Cannabis specific property insurance is a key component to protecting your business. You can’t predict when a criminal may try to break into your cannabis business, cause damage, and steal your hard earned cash, but you can be prepared to cover the loss. Property insurance allows for cannabis business owners to take some comfort in the fact that if they are ever robbed, the loss can be mitigated with a cannabis property insurance policy.

With millions of dollars in medical marijuana proceeds — all cash — being moved across Pennsylvania monthly in unmarked cars, state banking regulators have appealed to leaders in the U.S. Congress to create protections for financial institutions so that banks and credit unions might serve the state cannabis industry.

s2s insurance, eric rahn, marijuana insurance, marijuana property insurance, dispensary insurance, liability insurance for cannabis“We urge Congress to consider legislation that creates a safe harbor for financial institutions to serve a state-compliant business, or entrusts sovereign states with the full oversight and jurisdiction of marijuana-related activity,” states the letter from Pa. Secretary of Banking and Securities Robin L. Wiessmann.

State banking officials from Alaska, Connecticut, Hawaii, Louisiana , Michigan, Montana, Nevada, New York, Oklahoma, Oregon and Washington State also signed the letter.

The federal government considers marijuana illegal, although 31 states and Washingto

n, D.C., have legalized the drug for either medical or adult recreation use.

The handful of institutions that provide service to the marijuana industry are at constant risk of federal prosecution, asset forfeiture or criminal penalties.

At S2S Insurance our experienced cannabis insurance specialists will evaluate your potential risk based on all available data. Once the risk assessment is completed, a specialist can help you put together a risk management strategy that protects your cannabis business from the various but specific threats that face a cannabis business owner. Contact Eric Rahn at S2S Insurance today to receive a quote.

read more at post-gazette.com

Cannabis Business Property Insurance Protecting The Bottom Line

Making the decision to invest in a marijuana related business takes a big investment of time, energy and money. Early in the process of making those investments, cannabis business owners need to ask themselves how do they plan on protecting those investments. One measure of protection begins with business property insurance. Whether you own a marijuana dispensary, a cannabis testing lab, or grow operation, business property insurance can protect the items and space you need to keep your business running.

S2S Insurance, cannabis business property insurance, marijuana dispensary insurance, weed insurance

Marijuana related businesses face unique challenges and risks because of the products being sold and their relationship with the retail market. Marijuana related business owners are at serious risk of vandalism. Someone could try to break into a dispensary or a lab and could damage or destroy computers, monitors, display cases, storage areas, merchandise and more. There is also the risk of theft of those same items. A cannabis lab which may have expensive high end equipment would especially want coverage for stolen computers or tablets. A dispensary is going to want coverage for stolen marijuana, edibles, or other marijuana related items that might be found in a dispensary. Aside from vandals and thieves there are also natural disasters. Every year across the country there are news reports of terrible storms and devastating fires that cost property owners billions of dollars. We can’t predict when and where a storm or fire is going to strike, but as a cannabis business owners, there is no reason to not be prepared.

The Carr wildfire in California has likely caused an estimated $1.5 billion in insured losses to date, foreshadowing another major wildfire loss event for insurers in the state, according to a report by Moody’s Investors Service Inc.

The wildfire has ravaged parts of Shasta County in or near Redding in Northern California, caused six deaths, and left substantial property damage to date, according to the property/casualty sector report published by the New York-based ratings firm on Thursday. The fire has destroyed 1,555 homes and commercial structures, damaged an additional 240 homes and structures, and burned about 121,000 acres so far, according to the California Department of Forestry and Fire Protection.

s2s insurance, recreational marijuana, insurance for cannabis, liability insurance for marijuana

At S2S Insurance we work with each client individually to identify their risk management needs and set up a plan that makes sense for each individual cannabis business owner. For cannabis business owners we look at location of the business, demographics, crime data statistics, annual weather patterns and additional data which help to formulate a sensible plan for your business. As a cannabis business owner, you don’t want to be caught unprepared when a big storm hits, or when a wildfire breaks out. You as a business owner have no control over if someone wants to break in your windows and vandalize your place of business. We can’t control the unknown but we can prepare for all of those things providing peace of mind and a tangible way to recover when disaster strikes. All policies are subject to policy limits and should be reviewed with an experienced agent and your attorney.

read more at businessinsurance.com

How Cannabis Businesses Deal With Cash Concerns

A cannabis business owner has many concerns when starting a business, such as hiring employees, quality of products, and marketing to name a few.  The one aspect that must be considered early on is how cannabis businesses deal with cash.  Not just making money but how will customers pay for the product, where will money be stored, how will it be transported, what bank will the business use? These are questions that traditional businesses have to answer as well, but typically for those businesses it’s as simple as filling at a form at the local bank or credit union. For a cannabis related entity processing transactions and money is far from straight forward. Most banks and credit unions which are regulated by federal agencies refuse to accept money from cannabis related businesses. The banking industry’s refusal to do business with the cannabis industry requires cannabis business owners to work in a world of cash only transactions. Cannabis and cash are for the foreseeable future tied together at the hip forcing many to ask the question how do cannabis businesses deal with cash.

marijuana insurance, marijuana business, medical marijuana, liability insurance for marijuanaFor many cannabis businesses being forced to work only with cash, there are logistical problems and extreme safety concerns.  The logistics begin with basic payment methods.  Business owners can only accept cash, meaning debit and credit cards can’t be used, customers can’t use checks, therefore the only form of payment accepted in most cannabis businesses is cash. A business may be able to get away with claiming to be a “retail sales” company as a designation on a bank form, but eventually banks and credit unions will question the large number and amounts of cash transactions and may close the account. Cannabis business owners are faced with the reality of housing substantial sums of cash onsite, or having to transport tens of thousands to hundreds of thousands of dollars each day. Many business owners are forced to purchase large vaults and safes to store cash onsite, and pay for armored vehicle services to move large sums of cash to other facilities for storage. Being forced to manage these large sums of cash constantly creates additional expenses, but also creates additional risk.

Without a banking account, some cannabis businesses have to fund everything from payroll to taxes in cash. Those companies also cannot accept debit or credit card payments, apply for mortgages or even get small-business loans — all matters that are regulated by the federal government.

It also leaves the businesses with stacks of cash piling up in their offices — and criminals have taken notice.

Last spring, police in Phoenix estimated that six area medical marijuana dispensaries were robbed in a two-month span, according to local media reports. The year before, June was a particularly brutal month with several robberies or attempted robberies in Denver, Los Angeles, Detroit and San Diego.

The violence culminated with the death of an Aurora, Colorado, dispensary security guard, who was shot during a robbery on June 18, 2016. In Riverside, California, the next week, two dispensary workers were wounded in separate holdups less than 48 hours apart.

Cannabis Businesses deal with cash only operations

Cannabis businesses dealing in cash is not a secret. Criminals are aware that these different cannabis businesses deal in cash and very large amounts of cash on a regular basis.  There are countless examples of robberies and robbery attempts on cannabis businesses for this very reason. The reality is, if you are starting a cannabis business, you will have to deal with large amounts of cash and the risks associated with having large amounts of cash on hand. While each state has it’s own rules regarding marijuana and it’s legality and how businesses can operate in that state, cannabis is currently illegal on the federal level. As long as cannabis remains illegal on the federal level, the connection between legal marijuana and cash will remain closely affiliated. Business owners will have to protect their businesses from the various risks such as vandalism and theft by working with S2S Insurance Specialists for not only your property insurance needs, but all your cannabis insurance needs.

read more at washingtontimes.com