Tag

Cannabis Risk

Nov 29

What exactly is a surety bond for cannabis, anyhow?

By Business Insurance, From the Experts
Cannabis surety bonds range from $5,000 to $5,000,000. They provide a financial guarantee to states or municipalities that companies will follow laws and regulations tied to their licenses. These bonds work in two key ways: They require companies to undergo financial and credit scrutiny. This ensures leadership is qualified and poses a low risk. If a company violates bond terms and causes financial loss, the state or municipality can file a claim. If valid, the surety pays up to the bond amount and seeks reimbursement from the company. Challenges in Getting Cannabis Surety Bonds Securing cannabis surety bonds isn’t easy.…
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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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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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