The Risk Exposures for Cannabis Industry in 2020
There is a growing concern over the risk exposures facing the cannabis industry for 2020. However, it may not be what most people would expect such as problems with slip-and-falls at cannabis dispensaries, crops being ruined by extreme weather, or even adequate quality control issues.
In fact, Rocco Petrilli, board chair and chief operating officer of the National Cannabis Risk Management Association, cites controversial political moves, government interference and confusion at all levels, and financial concerns with the banking industry actually top the list of concerns for dispensaries around the country.
Unique Risk Exposures in the Cannabis Industry
Since the industry is still in its infancy, the types of risks faced are unique. While the perception of cannabis can be negative, many of the risks faced by cannabis business owners come from outside the industry.
For example, cannabis is still considered a Schedule I drug by the federal government. This means it shares legal space with drugs such as heroin or LSD. Due to its stringent scheduling, most federally insured banks refuse to do business with legitimate and state legalized cannabis operations. These companies are then forced to do business with mostly cash, which in itself causes a high risk.
Difficulties and Risks Associated
This leaves many cannabis dispensaries open to a perception of being a risky business and makes it difficult for these companies to find affordable property or general liability insurance. In fact, the top three risks according to the National Cannabis Risk Management Association (NCRMA) are:
- Staffing issues, such as filling the jobs in the industry.
- Communications channels, such as the media portraying the industry in a negative light.
- Higher risks in the financial sector with banking, financing, funding, and payment processing.
CannGen Insurance Services, LLC is a leader in the cannabis and hemp insurance industry. Operating as a Managing General Underwriter for the cannabis industry, CannGen offers brokers and insurance agents a wide range of products to service the cannabis industry. This unique line of insurance coverage also contains Commercial General Liability policies that are designed to meet the specific needs and concerns found in the hemp and cannabis industry.
Helping Agents and Brokers
For agents or brokers who are looking for General Liability coverage for cannabis dispensaries, CannGen provides coverage for cultivators, harvesters, manufacturers, distributors, retail, smoke shops, landlords, management offices, hydroponic stores and all other areas of the cannabis industry. With over a decade of experience in the cannabis industry, CannGen has proudly participated in some of the first cannabis insurance policies. Currently, we offer coverage ranging from $1 million to $2 million dollars with endorsement options available.
As CannGen continues to develop its full line of insurance coverage options for every sector of the cannabis and hemp industry, our goal is to meet industry needs using both ISO and program-specific coverage endorsements and forms. All policies are available for purchase alone or in conjunction with other coverages such as Products Liability, Crop, or Property insurance.
For more information about our comprehensive insurance solutions for the cannabis, CBD, and hemp industries, please visit our website at www.canngenins.com or email firstname.lastname@example.org.