Questions to ask an agent who is going after your cannabis business:
1. How are you involved in this industry
2. Do you know the different extraction methods and why they matter when it comes to insuring me
3. Do you know the difference between processing and manufacturing
4. Do you know the stages of growth and curing methods
5. Have you read our state cannabis bills
Believe it or not these matter significantly when insuring you properly
Why do I ask if your employees are 1099 or W2 because you may be leaving yourself exposed.
You have bud-tenders, grow assistants, and processors. Do they have a schedule? If they don’t show up could they be fired? Do they follow direction and rules from management? Do you give them all the supplies to do their job?
If you answered yes to any of those in the state of Oklahoma they most likely qualify as a W2 not a 1099.
In the state of Oklahoma Work Comp is required for any business with even one non related employee. Don’t leave yourself exposed to being fined or shut down due to this simple fix. Or to even an employee you’ve let go exposing you that they were paid incorrectly. Omma may be slow to respond but I assure you Work Comp and Oklahoma Labor Board are not.
How to correct this? Hire yourself an attorney and CPA who understands this industry. Contact your insurance agent and get a policy activated ASAP. It is fairly cheap so no reason to avoid it.
From researching claims across the states this coverage is the most valuable whether you are a grow, processor, or dispensary. You carry this exposure regardless of where you fall in the food chain. You are considered liable if the final product causes harm to an individual.
Some dispensaries are relabeling under their brand and taking on that risk head on. Others are receiving the flower in bulk bags. Once you open that bag or touch the product to measure it out for a sale, you are now in a sense of manipulating the original product.
What you need to know as you are purchasing insurance that I hope your agent has advised you on. If you are not growing and
processing your own product you need to request a COi
(Certificate of Insurance) from the grower/processor. If you don't
your insurance could deny a clalm brought against you. You want to make sure who you are working with has products
coverage not only to back up their product but for your own protection.
If you experience a loss, such as a fire or tornado, this coverage would pay you for the loss of income. This coverage may also come into play to collect expenses that it would take in order to operate at another location to continue business as normal. Make sure to discuss this with your agent as the timeline and financial limits on your policy may vary.
There are two parts of this, money in transit This is also known as the “trips and falls” policy. It will cover bodily injury and property damage that occurs on your premise due to your way of doing business. This coverage could also offer defense costs in the event of a claim.and product in transit. Coverage limits are typically between $25,000 to $100,000 and can be endorsed on your property policy. The carrier will have security measurements in place you must abide by to activate this coverage.
For Transportation policies this is written as "bailee" coverage and you choose your limits for the amount of product and cash you carry that belong to others.
This is also known as the “trips and falls” policy. It will cover bodily injury and property damage that occurs on your premise due to your way of doing business. This coverage could also offer defense costs in the event of a claim.
Recently I was asked if I could get a ""Raid'" policy to protect against federal government coming in. At first I thought it was a
joke. You want me 10 find an insurance policy protecting you from the, ummm, higher power?
The more I thought about it the
more it made sense. Since then. I have found a policy that would offer protection against "Government Action". Just some food tor thought. This policy will help with costs associated with the damages caused by government unlawfully.
Not directly in the Cannabis field? \Veil your business is now going to have 10 make choices as well. How will your company feel the impact of legalized medical marijuana? Medical marijuana is legal in 29 states and the District of Columbia. However, there are still lots of questions about its applicability.
Here are some insights and interpretations:
issued a medical marijuana card.m state to state. An approved practitioner must confirm that the patient suffers from one of the approved serious medical conditions, and must certify that medical marijuana can benefit the person. When the request is approved, the individual will be issued a medical marijuana card.
Your employee will tell you that he or she has been issued a medical marijuana ID card. There is no rule that states that people need to report the prescription to you. the employer.
Companies don't have to accommodate an individual who's been prescribed medical marijuana. However, your firm cannot discriminate against someone who's been issued a medical
marijuana ID card. Your state governs this and not the federal government, which hasn't
legalized marijuana as yet. It's still listed as an illegal Schedule 1 drug under federal law.
What policies might you have to change or update?
You may need to change your pre-hire drug screen process or policies. Your firm should
determine what roles in the company can be performed by someone who is authorized to use medical marijuana. You may decide that you don't want to hire anyone who tests positive for medical marijuana for a position that requires operation of a forklift, for example. Make this a company-wide policy so there's no question that one employee is being treated more favorably than another.
If your company allows the use of medical marijuana, it's critical during the pre-hire or random post-hire drug screening that you require employees who test positive 10 show their medical marijuana ID card.
If there's an elevated risk of injury with the use of medical marijuana, it may be beneficial to get guidance from your business insurance/worker's compensation insurance provider.
Look toward local laws, which can vary widely from state 10 state. For example. a California court recently reaffirmed that an employer can discipline employees even if the marijuana use is recommended by a physician. But in Arizona, an employer may not discriminate in any way against a certified medical marijuana patient who fails a drug test. unless the individual used, possessed or was
under the influence of marijuana while at work. or unless failure to take disciplinary action would cause the employer to lose a financial or licensing-related benefit under federal law.
The Americans with Disabilities Act might seem to require you to accept medical marijuana use in certain situations. as it enables some employees to do their jobs. On the other hand, the ADA says that
"a qualified individual with a disabilty shall not include any employee or applicant who is currently engaging in the illegal use of drugs." This can leave you threading a very fine needle, wanting to be an understanding employer but not wanting to tolerate illegal drugs.