Risk of Theft and Crime for a Cannabis Business

The cannabis industry has grown rapidly over the past decade, showcasing various medicinal and recreational products, and has adopted more of the plant. Many changes have accompanied the industry’s growth, including the measures that cannabis businesses take to protect their stocks.

While there are common security measures that businesses are taking to protect their cannabis businesses, there is no “go-to” solution because each has a different set of needs. For example, cannabis growers may have various video surveillance systems installed on their properties while a dispensary might have security personnel manning the door while the video surveillance is focused on catching in-store theft. Each cannabis business has its own worries and has to carry out the necessary risk management measures.

No matter the cannabis business you operate, there’s always the risk of theft and crime. These are some of the common risks for cannabis businesses:

1. Burglary or Robbery

As of the writing of this article, cannabis is still illegal at the federal level. Because of this, financial institutions are hesitant to work within the cannabis industry, meaning that many of these businesses are forced to deal largely in cash. In addition to the relative ease to resell cannabis products, these businesses are targeted at a high rate.

Depending on your location, you may have security requirements you have to follow to prevent robbery. In many cases, these would not be sufficient and should be superseded to keep your business protected from burglary and robbery.

Cannabis business owners should consider documenting and implementing burglary or robbery prevention procedures to use in training new employees and security personnel. These standard operating procedures should detail how to prepare and prevent these incidents, what to do during, and what to do after a cannabis business burglary or robbery.

2. Employee Theft

According to the Marijuana Business Daily, about 90% of the products and financial losses in the cannabis industry can be attributed to employee theft. In order to avoid these incidents, it is crucial to hire carefully; make sure every employee is vetted and has had a thorough background check. It is recommended that access control should be integrated with video surveillance systems to restrict access as well as logging all staff activities.

3. Vandalism

Vandals can come ham-fisted or organized. With valuable inventory, brand reputation, and one-of-a-kind facilities, some business owners make the mistake of maintaining poor perimeter security. It’s in the best interest of cannabis business owners to assume would-be vandals have come prepared. It is important then that a suitable perimeter security feature is put in place for a cannabis facility to operate securely.

How to Protect Your Business

Cannabis businesses should consider diverse insurance policies – crime, product, property, and crop coverage as needed.

Not all policies are equal. Each policy has different limits and exclusions and each insurance carrier can have specific definitions of what is covered. A variation in a definition can mean that you’re purchasing the wrong type of policy or amount of coverage. This is why it’s important to consult an agent who has experience covering this particular kind of risk.

For more information on the correct insurance policies for your cannabis business, contact Cover Cannabis now!