How Security and Insurance Intertwine in the Cannabis Industry
The cannabis industry saw a marked increase in crime during the pandemic, a trend that is continuing this year throughout many legal markets. News of robberies at dispensaries and farms have business owners searching for solutions in case their establishment is next. Physical security offers defense against potential robberies, but no system is perfect. In the event the worst happens, insurance policies protect the value of your business and its property and assets, so you can move on from these types of incidents.
A Common Cannabis Industry Risk
Because it remains a cash driven industry and due to the ease with which cannabis products can be sold on the black market, the cannabis industry faces a higher risk of robbery and theft.
Last year in Portland, Oregon, thieves made off with over half a million dollars of cash and products in just one year, that was a rate of two dispensaries robbed every week. So far in 2022, the Washington state cannabis industry has seen over 80 robberies. In both states, violence is often used in robberies, leading to beatings and sometimes even death.
The high rate of theft in the cannabis industry is fueling continued calls for legislators to pass the SAFE Banking Act and similar protections for banking and insurance companies servicing the cannabis industry. This will help reduce the amount of cash on hand and guarantee cannabis businesses can get the financial and insurance services they desperately need.
Protecting Against Risk
There are several steps that cannabis companies, especially dispensaries, can take to protect their business, employees, and customers against frightening, sometimes deadly, encounters with thieves.
Security guards are often a business’s first line of defense. Armed security guards don’t just try to stop robberies in progress, they are also powerful deterrents against potential crime. Thieves scouting your location are more likely to move on when faced with the added obstacle of armed guards.
Video surveillance that provides comprehensive views of your business and its most sensitive areas is crucial to helping law enforcement and attorneys get criminals off the street. Like security guards, the presence of video cameras also acts to dissuade potential thieves.
Barriers such as locked entryways and hardened glass partitions further prevent access to your company’s important areas. Keeping valuables stored securely in a safe offers an additional layer of protection. When a robbery is in progress, slowing down the assailants can buy time until law enforcement arrives and can even force the criminals to abandon their attempt.
In-transit theft strikes when your assets are at their most vulnerable, when on the move. Armored transit services have stepped up to fill this need, and many now specialize in protecting cannabis industry assets.
You can also take steps to protect your business from employees. Maintaining an up-to-date employee list, doing due diligence during the hiring process, and limiting employees who can access certain areas of your business are all effective measures to prevent employee theft. Inside theft happens most often with unhappy employees. Building a loyal, well trained team can help prevent inside theft by creating trust and transparency.
Security and Insurance Go Hand in Hand
No matter how well you secure your business against risk, there are still threats, either intentional or accidental, that can negatively impact your business and its ability to operate. That’s why it is important to insure your business, including its cash and products, as part of your loss management plan.
Insurance policies that include property coverage protect your assets in the unfortunate event that your business is robbed. This ensures you have the funds to make repairs, restock your supplies or replenish retail stock, and take care of any additional needs you may have to restart operations.
Protecting Your Company Against Risk
If you don’t currently have an insurance provider, it is important that you find a partner with prior experience working with cannabis companies. They should also have the necessary knowledge of state cannabis regulations to ensure your business is fully compliant and covered against potential risk. Contact CannGen here to see what coverages you need to best protect your business.
More Cannabis Industry News
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Or get more information about comprehensive insurance solutions for the cannabis, CBD, and hemp industries from CannGen here.
Disclaimer: Information shared is for general purposes only.