The cannabis industry is in an unprecedented boom, when by 2030, estimates speak of sales that could reach an incredible amount of 72 billion dollars, if legalization reaches other countries on the continent, which are currently considering it. Alongside the growth of the cannabis market, which manages to attract the biggest investors and entrepreneurs in the world, and ignite the imagination of many of them, there are quite a few risks and challenges in the field that need to be considered.
The growing pool of people who use cannabis, along with the dealings with the regulatory authorities to obtain the various required licenses and approvals, increases the risks and the exposure to opening various regulatory and legal proceedings against the companies dealing in the cannabis field.
The cannabis companies must understand that they are today in a developing and very dynamic reality, which requires them to prepare insurance plans in advance, which will provide them with protection and allow the company’s activities to continue as a series and not paralyze it. One of the most effective and best solutions for reducing and managing risk is insurance for cannabis companies.
As part of that insurance, the cannabis company must build for itself an insurance plan that is precisely adapted to its needs, goals and activities.
What insurances does the Lamda Group offer today for the cannabis companies?
Today, the cannabis companies face a number of complex challenges, which concern a field that opens up many opportunities for them, but also risks. Here are some insurance policies for cannabis companies that are necessary and important for them:
Officers and directors insurance – Today we see significant capital raising by Israeli and foreign cannabis companies, along with making significant moves of growth, growth and the launch of products and services. Behind all these decisions, there are directors and officers, who are exposed to lawsuits related to professional issues that are made within the scope of their duties. But also for employee claims, for example. This is why it is very important to insure them with appropriate insurance, which will help them have peace of mind and perform their work to the best of their ability.
Property insurance – helps protect your cannabis products against fires, thefts and natural disasters.
Product liability insurance – will provide financial coverage to the company, if the product you developed, God forbid, causes damage, illness or side effects to customers.
Cyber insurance – many systems, platforms and software of the various cannabis companies are currently working on advanced technology, which helps them monitor and deliver the goods on time and meet the regulatory and compliance requirements. The same systems are also exposed to cyber attacks, including dangerous ransom and phishing attacks, which can damage companies financially and image-wise. Cyber insurance allows you to receive financial compensation if such an attack occurs. And also, it even provides coverage for legal and regulatory proceedings that are opened against the company, including lawsuits for breach of privacy for example or damage to intellectual property.