Cannabis business owners face pressure from all sides. State regulations, local regulations, and heavy competition that may want to sabotage your business. With all of the things you have to worry about, your cannabis security company shouldn’t be one of them.
Choosing the right security company can be a challenge. So, one of the things you should look for is that they cannabis-specific insurance with the right amount of coverage.
Many security company owners that transition into the cannabis industry fail to realize that most traditional insurance companies won’t cover cannabis operations. Thus, they may be completely uninsured in a high risk industry.
The next insurance related matter to consider is the amount of coverage your security company may or may not have. For example, the State of Michigan allows security companies to operate with only a bond of $25,000.
If there were an incident where a cannabis security company used force to protect assets, the claim would be well above $25,000. Then, the client (i.e. you) could be liable for the rest of the settlement or award.
Bottom line is that a good cannabis security company will have cannabis-specific insurance coverage in the millions of dollars range. This level of insurance coverage is necessary to cover any incident.
Therefore, we strongly recommend checking with your security provider and asking for a Certificate of Insurance. Any reputable, well-operated company will have no issue providing this as it is a standard business practice.
So be aware of security firms that claim to be able to operate in the cannabis industry and provide rates much lower than their competitors. Odds are pretty good that they are cutting corners somewhere to provide services at a lower rate.
One of the most common ways to cut corners is to have sketchy insurance, or worse, no insurance. If this happens and there is an incident, you could be held responsible for paying out any law suits.
MSO carries $2,000,000 in General Liability Insurance that specifically covers all of our cannabis operations. To learn more about our facility guards Click Here.