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OG Cannabis Insurance Blog

The insurance game is an ever-changing environment, especially in the Cannabis Dispensary Insurance sector. There are a variety of different factors (e.g. cannabis laws and policies) that can affect the way your insurance works and how you and your business are covered.

The OG Cannabis Insurance blog keeps you up to date on cannabis insurance, laws and policies, and dispensary insurance news so you can be proactive on protecting yourself when the unexpected happens. We update our cannabis insurance blog regularly so check back soon for more posts!

Protect Your Cannabis Business From Risks Of Theft And Crime

The cannabis industry has grown rapidly, and now it has a wide variety of legitimate parties involved in it. It is quite surprising how the cannabis industry has blossomed and is now presenting options ranging from medicinal to recreational products. We can see that the cannabis industry has now adopted more of the plant and offers products such as CBD and products with THC.

These legitimate storefronts and businesses have evolved to protect their product by employing security personnel, minimizing employee theft, and having a video surveillance system that can help owners in the cannabis industry be aware of what is going on in their businesses.

Indeed, when you manage your own cannabis business, you have your work cut out for you. Besides managing legal intricacies, you also need to ensure your product quality. In crafting relevant marketing strategies, you have to deliver an ideal service experience.

Between all of these requirements, you also need to mitigate the risks of theft and crime within your cannabis business. Otherwise, you may lose your precious product and hard-earned funds in a way that makes them irrecoverable.

Now, implementing these security measures will vary across the cannabis industry spectrum. For instance, cannabis growers may have different video surveillance systems at their properties. Each legalized cannabis operation will have to worry about different types of risk and implement the necessary risk management measures.

While managing these challenges can seem extremely daunting, it is still not impossible. To help you through this path, here is how insurance can help you protect your cannabis business from risks of theft and crime.

What Are the Risks of Theft and Crime For a Cannabis Business?

No matter the type of business you operate, you always have some risk for theft and crime. These possibilities can range from premises invasion by unknown criminals to embezzlement by your employees.

These risks stay intact even when you run a cannabis business. They only grow further in certain cases due to the overall approach towards cannabis and its related products. When your legal protections are not clear enough to understand right away, it can create a variety of difficulties for you to safeguard your business.

For a cannabis business, some of the most common risks of theft and crime include the following aspects.

Burglary or Robbery

Any business is open to the risk of being stolen from or robbed at different times of the year. This also holds for cannabis operations, which can face such threats on-premises and during transport. These challenges may traumatize your employees and leave you with huge financial losses.

If you obtain a commercial crime insurance policy for cannabis business operations, you may also receive burglary or robbery coverage with it. In turn, this policy gives you financial protection against such incidents.

Employee Dishonesty

Selling high-quality cannabis products such as flowers, edibles, and tinctures is extremely important for any marijuana operation. At the same time, maintaining your funds also stands as a crucial objective. But sometimes, these foundational goals get compromised by employees’ dishonesty.

In some situations, your employees may fall into the habit of stealing your product and replacing it with low-quality variants. In other instances, they may resort to taking company cash. The right commercial crime insurance policy can recover your losses in such cases.

Theft of Money or Securities

As a running business, you need to maintain a supply of cash at all times. You may also have certain securities that you hold as business investments in some cases. But this exposes you to the risk of theft of money or securities.

Regardless of the reason behind this theft, it can often land you in major financial distress. To steer clear of this risk, you can use the theft of money or securities coverage through your commercial crime insurance policy.

Forgery or Alteration

Forgery or alteration is a specific type of criminal fraud where false financial instruments such as checks are drawn in your business name. These instruments can withdraw cash or liquidate your assets due to the forged or altered information on them.

Your cannabis business that may already have a running flow of cash or certain investments could create a risk of irreversible loss. By using a commercial crime insurance policy that covers this aspect, you can protect your business from it.

Other products such as computer fraud coverage may also help you save yourself from instances such as cyber theft. Depending upon your business model, you can further explore these options to strengthen your financial security further.

What Happens If You Don’t Have Commercial Criminal Insurance For Your Cannabis Business?

If you don’t have a comprehensive policy for commercial, criminal insurance, you leave your business open to many risks. If an unforeseen incident occurs, you may have nowhere to turn for financial coverage. This leads you to cover your losses by yourself, which could create significant hurdles in maintaining your operation in the long run.

Due to this reason, most businesses – including those in the cannabis sector – turn towards commercial, criminal insurance to have a well-rounded coverage policy. With specialized approaches and solutions, you can keep your business safe from various ongoing operational risks at all times.

Our team at OG Cannabis Insurance understands the value of access control and a security plan that would deter would-be thieves that would disrupt your daily operations.

You Can Follow Best Practices for Business Security

In addition to having a strong insurance policy that gives you a safety net, you can also follow certain best practices to keep your business safe from financial turmoil.

These measures include but are not limited to:

  • Doing background checks before hiring employees.
  • Conducting financial safety training on an ongoing basis.
  • Managing security risks on-premises to strengthen your overall safety.
  • Maintaining a varying schedule for depositing or withdrawing cash from your bank.
  • Investing in a high-end safe to keep your cash and valuable assets.
  • Changing your security codes and passwords regularly.
  • Obtaining cybersecurity solutions to use across your workplace.
  • Installing security cameras around your premises, especially entry and exit points.
  • Reconciling your receipts daily.

By following these measures, you can elevate your business’ security and lower its risk of being hit by criminal activities. The combination of a reliable insurance policy helps you optimally protect your cannabis venture.

You want to make sure to protect your business as you comply with state regulations and federal law. But while you are investing in yourself from a legal standpoint, it is best to do so from an insurance and security standpoint to preserve your business.

OG Cannabis Offers Various Solutions for Cannabis Companies

From cannabis cultivators to retail business operations, cannabis businesses face issues that range from in-transit theft to break-ins and even armed robbery. Each operation will want to make sure that elements such as alarm systems and other cannabis security aspects are in place to deter crime.

Professional operations want to manage compliance on a federal level and implement security protocols while having standard operating procedures that optimize cash and product preservation.

At OG Cannabis Insurance, we understand all the risks and intricacies of running an ambitious business in the cannabis sector. That is why we offer targeted and specially-designed products that support you through the most challenging aspects of managing, such as venture.

To see how our solutions can help, don’t hesitate to reach out to us at (877) 473-7979to get your quote today. Our experts will be glad to guide you through the process to mitigate risk and help you protect your business.

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