New York Marijuana Growing Season 2 – Boom or…?

This guest column from Wayne Margulis, cannabis insurance consultant in the world’s top five insurance brokers. HUB International. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of NY Cannabis Insider.

As the second growing season in New York quickly approaches, are you ready to tackle the challenges facing this promising industry?

Cannabis operators continue to struggle with an unfavorable regulatory environment, labor shortages, supply chain disruptions and the constant threat of property damage and product recalls looming over the industry.

Rising inflation and higher costs for fertilizer, building materials, packaging and more are hurting the industry’s bottom line. However, cannabis companies are hesitant to raise prices in an ultra-competitive market.

Threats to profitability lurk around every corner. Cannabis operators who invest in their employees will benefit from increased worker loyalty, while those who focus on mitigating their biggest risks will be resilient in the event of catastrophic losses.

High employee turnover and a shortage of skilled workers are testing hemp companies, forcing operators to spend extra time and money on attracting and retaining employees. This is a challenge that will become more difficult as the industry grows. Investing in people will lead to success.

It’s important to prioritize your risk strategies so you don’t get stranded.

Cannabis cultivators, growers and extractors face hazards associated with the very components and systems needed to grow plants, including high intensity discharge (HID) lighting, chemical exposure and butane oil extraction.

In the first six months of 2022, cannabis companies filed more complaints about their product liability policies than in the last five years.

In 2022, states issued dozens of recalls for marijuana-laden foods and mislabels. These incidents have drawn the attention of plaintiffs’ lawyers, who have filed claims on behalf of consumers alleging that they harmed these mislabeled or contaminated products.

Cannabis companies with sound risk management plans and advisors to ensure their insurance policies cover many risks will be well positioned to grow and succeed in 2023.

To make a plan

Work with a cannabis insurance specialist to develop a bespoke strategy that will protect profits, support your workforce, and build resilience for 2023 and beyond.

Here are some initial considerations:

There is a high chance that the product will be recalled. Your first line of defense is your internal policies and procedures, including due diligence on your suppliers and partners. Be careful about the general and product liability coverage you buy, and ask your broker to clearly explain the differences in coverage. Carriers may provide coverage for equipment if the equipment is included in the cannabis use policy, whether it is used for growing cannabis or without cannabis.

Take your benefits program to the next level with personalized options that won’t break your budget. You can access the same benefits as other industries, including 401(k) plans.

As more carriers offer dedicated insurance coverage for the cannabis industry, now is the time to think about how best to protect your executives and build resilience by insuring them against directors and officers liability claims, business interruptions and cyberattacks.

Let your broker know what changes you have made to the business so there are no surprises when you renew. Review the risks and insurance needs at least 90 days before renewing your policy so your broker can determine the best options.

Content Source

California Press News – Latest News:
Los Angeles Local News || Bay Area Local News || California News || Lifestyle News || National news || Travel News || Health News

Related Articles

Back to top button