Category

Business Insurance

Nov 24

Eau De Cannabis – A Kapnick Case Study

By Business Insurance, Case Studies, From the Experts
As more states legalize recreational and medicinal marijuana, the environmental impact of large-scale cannabis cultivation is under greater scrutiny. Environmental concerns for cannabis operations include water and energy use, extraction practices, waste disposal, and odor. While risk management programs help reduce environmental pollutants, having environmental liability coverage is just as critical. The following case study highlights why. The Problem: Odor and Environmental Liability Flowering cannabis plants produce strong odors, which can disrupt neighboring businesses if not controlled. Courts have ruled that odors from facilities fall under the pollution exclusion in commercial general liability policies. A substance doesn’t need to be…
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Nov 23

D&O Insurance for Cannabis Companies: Essential Protection

By Business Insurance, From the Experts, Specialty Risk
In today’s evolving and unpredictable market, D&O insurance for cannabis companies is essential. It protects the financial assets of owners, board members, and executives—whether the company is public or private. This coverage includes legal fees, settlements, damages, and other costs tied to lawsuits from managerial decisions with financial consequences. Why Cannabis Companies Need D&O Insurance Common activities that lead to D&O claims include: Acquisitions, mergers, or management buy-outs Breach of contract or mismanagement of assets Bankruptcy, liquidation, or changes in ownership Defamation, libel, or slander Misrepresentation or nondisclosure Without D&O coverage, company leaders risk exposing their personal finances in lawsuits.…
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Nov 01

The New Michigan Marijuana Liability Requirement – Where to Start?

By Business Insurance, From the Experts
Unsure where to start with Michigan’s new marijuana liability insurance requirement? Kapnick can help. Public Act 55 of 2021 recently amended the Michigan Regulation and Taxation of Marihuana Act. Effective October 11, 2021, this law requires marijuana retailers and microbusiness licensees to maintain at least $50,000 in marijuana liability insurance coverage. Compliance Deadlines for Marijuana Liability Insurance The compliance timeline depends on your license date: Existing Licenses: Retailers and microbusinesses licensed before October 11, 2021, must submit proof of liability insurance to the MRA at license renewal. New Licenses: Retailers and microbusinesses licensed on or after October 11, 2021, must…
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Oct 28

Cannabis Workers’ Compensation Consolidation and Access – A Kapnick Case Study

By Business Insurance, Case Studies, From the Experts
Managing common workplace hazards directly impacts your bottom line. This case study highlights how strategic risk management improves your cannabis workers' compensation programs. Learn how we helped a startup optimize their coverage, secure better rates, and protect their growing team. The Problem: Fragmented Cannabis Workers' Compensation A startup cannabis distribution client operated multiple locations across the same state. Each facility held separate policies through a state-sponsored assigned risk pool. This setup complicated their cannabis workers' compensation strategy and drove up their operational costs. The Solution: Streamlined Coverage We successfully combined those fragmented policies and placed the coverage directly with one…
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