Why Theft Insurance Needs to be Front of Mind for Cannabis Businesses

Operating a cannabis business pits your company against a range of unavoidable risks and exposures. As the industry continues to grow and demand of the cash crop increases, the issue of theft is emerging as one of the biggest challenges facing companies in this space.

Whether your business grows, processes, ships, stores or sells cannabis, you face an increased risk of theft across your operations. And it’s not just cannabis that’s being stolen. It’s also all the cash that’s likely on premise as well as sensitive information that could cost your business even more.

Theft Comes in Many Forms

The perpetrators can be your own employees, business partners you depend on or, worse, career criminals who are out to take as much as they can without leaving a trace.

Regardless of the intent or the extent of theft, there’s a very high likely hood your company is a target. That’s why it’s crucial that you have insurance and coverage that will protect your business should theft occur.

In fact, the policy language you have in place can literally mean the difference between eating a massive loss that may cost your business or recovering unscathed without any lasting damages—and this outcome may ride on just a few words.

Risk Around Every Corner

When you’re dealing with commercial quantities of cannabis-based product, the potential for theft surrounds your business. There’s the raw product, business-related equipment, and a high likelihood of cash on site—and these exposures are just the physical risk of theft that can occur.

In a more and more connected world, there’s also the emerging and increasingly more devastating risk of data theft. Whether it’s thieves literally stealing computers or a savvy cyber criminals gaining access to sensitive customer and business information, it’s always a bad situation to have to deal with.

A data breach will likely result in compounding losses. There’s the initial costs of lost business as well as hiring data and security professionals who might be able to recover lost files or negotiate for them if there’s a ransom at play (which you will need to pay for).

Then there’s the associated legal damages, including customers and businesses who likely had their financial and personal information compromised. Ultimately, once the fuse is lit, there’s no stopping the associated damages.

And if you don’t have insurance that will protect you against this loss, it’s all coming out of pocket.

Don’t Wait for the Worst to Happen—Protect Your Business Before it Does

As is the case in business and in life, more people respond to a crisis than they prepare for it. If you want to truly protect your business, you need to prepare for the worst that can happen and invest in insurance that will protect you if it does.

If you’re at all curious, concerned or have questions about your own insurance or if you want to make sure you have the proper theft coverage in place to protect your cannabis business from a loss, please don’t hesitate to contact me or give me a call at (626) 535-1480.

About Corey Tobin

With close to a decade of industry experience, Corey has worked with a number of small and medium-sized businesses and is knowledgeable about property and casualty, life and health insurance. Corey specializes in working with elevator contractors, manufacturing, distributing, healthcare and construction. Additionally, he is focused on the unique needs and challenges facing cannabis related business, including dispensaries, cultivators, extractors, developers and much more.

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