How Workers Compensation Insurance Benefits Cannabis Businesses

As a cannabis business owner there are certain responsibilities and requirements that cannot be avoided. One requirement that causes trouble for some employers is workers compensation.  Most states require employers to carry workers compensation insurance with few exceptions other than number of employees. States vary on the number of employees any employer must have before carrying workers compensation but it can be as few as five or even one employee. While on the surface carrying workers compensation can seem like an unnecessary burden for the employer, it is important to recognize the benefits of the coverage.

cannabis workers compensation, s2s insurance, eric rahn, dispensary insurance, lab testing insuranceWorkers compensation insurance and coverage is designed to protect the employer in instances where an employee gets hurt on the job. If this coverage were not mandated or not available to employers, businesses would be at risk for law suits with every employee that walked through the door. Whether you are a start up cannabis dispensary, or a large manufacturer of cannabis goods, a single law suit could ruin your business in the blink of an eye. Even if a business is successful in defending against an employee law suit, they would have spent thousands of dollars in court and legal fees to do so. If they were to lose the case they would have those same fees, plus the cost of damages, and in some instances they may also have to pay the legal fees of the employee! Now imagine that scenario but add in the fact that if you don’t have workers compensation insurance in a state where it’s required, you can also be fined, even see your business possibly temporarily shut down until the matter is resolved.

The California Supreme Court on Thursday, Aug. 23 sided with employers in a fight over the right of workers to sue over treatment for injuries that occur on the job.

Workers receiving medical care through the workers’ compensation insurance of their employer generally cannot sue a doctor who decides whether treatment is needed, the court said in a unanimous decision.

The ruling came in the case of injured worker Kirk King, who says he suffered seizures after a doctor discontinued his anxiety medication.

The justices said King had to pursue his claims against the doctor through a separate workers’ compensation system set up by the Legislature, not through the courts.

The California Chamber of Commerce and insurance groups had warned that a ruling in favor of King would open the door to additional lawsuits that would drive up employers’ premiums for workers’ compensation insurance.

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Another benefit to workers compensation whether for traditional employers or for the cannabis industry is that workers compensation insurance is monitored by state governments. The full benefit of this fact may vary among states, but as referenced in the article above, state governments look to balance the rights of the worker with the costs to the employer. Employers will always want to spend less and employees will always want more, but states do their best to be a neutral arbiter when crafting laws and legislation dealing with workers compensation, as evidenced above. Eric Rahn of S2S Insurance makes a concise statement regarding workers compensation, “chances are you have to have it, and you do not want to get caught without it.”


S2S Insurance Helping Prevent Big Fines For Cannabis Business Owners

For all cannabis business owners, employee safety must be a priority. Whether you own a factory, a retail shoe store, or a marijuana dispensary, as a business owner it is critical that employees have a safe working environment. Unfortunately, no matter what safety precautions that you may have taken, or rules that are implemented, employees get injured on the job. Injuries can occur in any line of work including the cannabis industry and businesses owners should protect themselves and their investments. At S2S Insurance we work with cannabis businesses to help mitigate risk from employee injuries that occur on the job. We help our clients set up workers compensation policies that pay damages no matter who’s at fault for the accident.

S2S Insurance provides workers compensation insurance coverage for cannabis businesses

S2S Insurance provides workers compensation coverage for cannabis businesses.

In many states employers are required to maintain workers compensation policies. An S2S Insurance agent can walk you through the requirements of your state to help you determine what is required. In states where workers compensation insurance is required, not maintaining proper coverage can result in heavy fines that negatively impact the business’s bottom line. Even if a state does not require workers compensation insurance, business owners should discuss having one with an S2S Insurance agent as a form of risk mitigation. Having a policy that pays damages no matter who is at fault could save a business hundreds of thousands of dollars in some instances.

District Attorney Diana Becton said, “The District Attorney’s Office is committed to protecting the workers of Contra Costa County. Operations like these are an important part of obtaining compliance before an employee finds out the hard way that their employer did not have coverage for a severe injury.”€

“This operation protects employers who are playing by the rules from being undercut by those who don’t,” said California Labor Commissioner Julie A. Su. “We also issued these citations because employees are entitled to workers’ compensation insurance if they are hurt on the job.”

Willful failure to provide the insurance is punishable by substantial fines and misdemeanor criminal prosecution. Employees that do not know whether they are covered can check their employer’s notices board or ask a manager. Labor Code section 3550 requires the employers to post a notice identifying the current insurance at a conspicuous location.

S2S Insurance provides workers compensation insurance

S2S Insurance can help cannabis businesses manage risk

At S2S Insurance we look at your entire business platform and look for ways to limit your exposure to the various risks and pitfalls that can hurt your business. Workers compensation insurance is one of many insurance tools we use to help minimize risk for our clients. Not every product we provide works for every business which is why it is important you work with one of our experienced professionals at S2S Insurance to help you develop a risk mitigation strategy for your business. As always policy limits do apply and it is critical that you review and understand your policy selections with a qualified insurance agent and an attorney. Our goal is to be an asset and an additional resource to every client we work with in the cannabis industry. Whether your business is just starting out or established over some period of years, contact us today for your insurance needs.