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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 Company Assets With The Right Policy

Cannabis Asset Protection

Asset protection, a component of financial planning, is a process intended to protect an individual’s assets from creditor claims. People, as well as business enterprises, use asset protection techniques to limit creditors from accessing certain valuable assets while operating within debtor-creditor law boundaries.

The United States, despite being a land of opportunity, comprises more lawsuits than any other country globally. Marketing products have an inherently higher risk of liability. If there is an industry you would wish to guarantee you have extra protection layers for your business as well as individual assets, it is the cannabis or CBD oil industry. As long as you are involved in a rapidly-growing industry with new principles and conventions, you need to protect your assets.

Why do you need to protect yourself and your assets?

The objectives of asset protection planning are to improve client bargaining position, offer an incentive for settling a claim, deter litigation, and provide options when a claim is asserted. Protecting yourself and your assets is not about hiding your assets, defrauding creditors, keeping secrets, or avoiding taxes.

Most firms in the Cannabis Industry are Vertically Integrated

Similar to other businesses, you are prone to risks. In the fast-growing cannabis industry, the Cannabis market is worth $8 billion. Asset protection here will ensure sustainability in the cannabis industry. Total assets refer to the sum of liabilities and capital input. Total assets could also indicate the sum of all assets owned by a business as indicated in the balance sheet. Cash flow is a problem for many cannabis companies and many would benefit from the infusion of cash that comes with better valuation. Unfortunately, most of the company valuations in the industry are highly discounted. Most publicly traded cannabis companies are also suffering, with stock prices plummeting in recent years. Therefore to increase value and chances of being bailed out, most cannabis companies especially those producing medical cannabis and related products are vertically integrated, properly licensed, with brands and a retail presence.

Investors and intangible company assets in the Cannabis Industry

New investors are thus encouraged to follow the example of seasoned investors in the cannabis industry to avoid losses. The relative newness of the industry also means it is unpredictable in the stock market. Companies that have a production capacity of as much as 50,000 kilos still have to struggle for survival and many have been bought for amounts less than they were worth. Most opportunistic investors especially prefer later-stage deals where the revenue is $20 million or more. The issue of intangible assets and goodwill has especially been used to inflate the value to lure investors to pay beyond the price. That is probably why virtually each cannabis firm is reporting losses after the first and second quarters of 2021. Many investors do not know how to calculate intangible assets and will thus jump at a company’s acquisition without looking at the underlying issues. Such intangible assets could include the values of future customers or management and customer agreements that are underway during the acquisition of the investments.

Legal Protection

Legal agreements with partners and investors, deceptive trade practices, etc., need legal protection. Asset protection in the cannabis industry can be a basic asset and advanced asset protection. Basic protection covers company owners and investors. Investors living in the U.S states that have legalized marijuana observe specific rules of asset protection. Investors must determine how to maintain relationships and the operations of the cannabis company. The owner should hold the safe asset or investment in the operating company. Unfortunately, recreational cannabis is not as widely embraced in the US as its medical counterpart and thus companies still have to tackle issues such as decriminalization of small marijuana amounts possession before they can fully function.

Protect trade secrets and do not give too much data to the investors. Investors can use the data to their disadvantage. Proper 280E Analysis needs to be done to the understanding of investors. This is a proper guide to all investors on the boundaries they ought not to cross as they deal with you. Engage an experienced attorney to fully protect your trademark and company product’s name.

Have your marijuana company licenses in place, including sales tax registrations. Check that you have observed all the tax regulations in all the relevant states in the U.S.

Advanced asset protection applies rules for the Cannabis Market too. Set up a Nevada Asset Protection Trust (NAPT). Follow proper policy and procedures for your cannabis operation as this is critical to reducing your liability. Separate any personal assets from company assets. Examples are real estate.

What’s covered by a Cannabis Business Insurance Policy?

The cannabis business operations are getting more hectic every day. Not only are the stocks volatile but bills are also passed or denied. During this challenging and debilitating period, people are forgetting more about individual businesses and want to leave them unprotected. Fortunately, here at OG Cannabis Insurance, we have got you covered.

Our team has been in the insurance industry for over two decades. We specialize in all aspects of the cannabis business. So, why let our business go up in smoke when you can figure out the best insurance policy for your needs?

Cannabis property insurance

Investing in a successful marijuana business requires you to spend a lot of growing equipment, buildings, and display cases. You would not want embezzlement or other unforeseen circumstances to shatter your dreams. Our cannabis property insurance policy is exactly what you need. It will cover personal property at your enterprise, the building, outdoor property, money, and securities.

Cannabis product liability insurance

Imagine investing money, time, and effort into your new marijuana-infused edibles organization, for it all to come crumbling down. Your business would come to an end if you do not have cannabis product liability insurance.

However, with professional help from our esteemed team, you need not worry about anything. From stocking procedures to marketing processes and the property you are using, your cannabis business will be well-covered with a cannabis product liability insurance policy.

Workers compensation for cannabis business

Similar to other businesses, you have workers. Legally, they should have workers’ compensation. Here at OG Cannabis Insurance, we have you covered. You need not fret much. From multi-state coverage to payroll integration, contact us today to ease your mind. Get a free quote now!

General liability cannabis insurance

As a cannabis business owner, the last thing you would want is to start your company and get sued immediately for everything simply because a client forgot the bright yellow step into your company. Cannabis recreational users vary in age. So, you never know what accident(s) may happen. Luckily, our OG Cannabis Insurance company can help you be ready for the unthinkable with our general liability cannabis insurance policy.

 Cannabis commercial auto and cargo insurance

Our cannabis commercial auto and cargo insurance policy, unlike other insurance policies, covers everything – medical payment, uninsured motorist bodily injury, comprehensive, and collision. Whether you make deliveries to your patients or your dispensary, we have you covered.

How much does it cost to get coverage for your Cannabis Company Assets?

The cost of coverage for your cannabis company assets is invaluable. If you consider not having an insurance policy, you are putting your business at high risk. It can either cost you some money to pay for some expenses or it may easily come crumbling down. Refrain from the possible pain and call us at OG Cannabis Insurance for a custom quote!

Other options for protecting your cannabis company assets

Besides the options for protecting your cannabis company assets mentioned above, there are other insurance policies that we at OG Cannabis Insurance can provide you with.

Marijuana cultivation insurance

We highly value every section of the growing procedure: seed-vegetative plants-flowering plants-harvested products. Additionally, our packages cover general liability, growth equipment, building, and lights. Marijuana crop insurance is an élite coverage of our cannabis insurance policy.

Cannabis dispensary insurance

If there is one thing we are well-versed in is cannabis dispensary insurance. Once you open the doors to your new dispensary, you are opening it to global chaos. Get OG Cannabis Insurance coverage so that you do not need to vex much about anything.

Cannabis license surety bonds

When starting a cannabis business, you need a marijuana license surety bond. Our team will take the time to learn about your company and offer you the ideal insurance policy fit for your business. Get a free quote today by giving us a call.

Marijuana laboratory and testing facilities insurance

The scientific methods required are incredibly tortuous and complex. Do not experience a loss because of science jargon omissions and errors. Marijuana laboratory and testing facilities insurance policy is exactly what you need if you cave cannabis laboratory facilities.

Secure your cannabis business, contact OG Cannabis Insurance today!

Proper policy and processes for your whole marijuana operations, payroll support, and HR are integral in minimizing your liability. We provide the fastest quotes in the cannabis industry as well as access to various marijuana-approved insurance companies. We do not generate leads. However, our customers are assigned steadfast and enthusiastic insurance agents. Call us today and get to enjoy the experience of working with us.

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