What calibrated coverage for cannabis Service Providers looks like.

Some business provide professional or ancillary services to cannabis companies. These professional services range from consulting and legal to HR and payroll services. Their operations do not differ from similar types of companies who provide the same services to other industries, but their focus on the cannabis industry does impact them from an insurance perspective.

A license to succeed.

State lines. Lines of business. Calibrated coverage means lines of insurance that fit your growth plan.

Legal liability and the potential for lawsuits is among the top concerns facing cannabis service providers. These risks include professional liability, such as errors and omissions and other professional mistakes. Plus, 19% of service providers report that they worry about customer slips, trips, and falls.

The most common cyber risks among service providers are security breaches and their computers being damaged or going down. Cannabis service providers also face professional liability risks from cyber attacks. 62% of professional services firms cite cyber risk as their top risk.

The theft of customers’ personal info — or worse yet, their financial info — is a looming threat for service providers. Bad actors can wreak havoc by stealing data, encrypting your data and extorting you, or shutting you down with a DDoS attack. These challenges can cause lasting damage to a company who isn’t prepared to face them.

A license to succeed.

State lines. Lines of business. Calibrated coverage means lines of insurance that fit your growth plan.

Legal liability and the potential for lawsuits is among the top concerns facing cannabis service providers. These risks include professional liability, such as errors and omissions and other professional mistakes. Plus, 19% of service providers report that they worry about customer slips, trips, and falls.

The most common cyber risks among service providers are security breaches and their computers being damaged or going down. Cannabis service providers also face professional liability risks from cyber attacks. 62% of professional services firms cite cyber risk as their top risk.

The theft of customers’ personal info — or worse yet, their financial info — is a looming threat for service providers. Bad actors can wreak havoc by stealing data, encrypting your data and extorting you, or shutting you down with a DDoS attack. These challenges can cause lasting damage to a company who isn’t prepared to face them.

Testimonials

We’ve found AlphaRoot, particularly Isaac, to be proactive, with spot-on coverage suggestions and hands-on help. Plus, the AlphaRoot online platform eliminates a lot of tedious work we previously had to do for renewals

Dean Kisieu CFO, Arcview

Our previous broker didn’t have sufficient industry knowledge, but Eric is highly professional and knowledgeable. He’s always on top of things, responding faster than I can type. AlphaRoot even checked for gaps in coverage — who wouldn’t want that?

Marina Chumakova CFO, Cannabistry

Core Coverage

General Liability

General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.

Crime

Whether employees steal from you, a thief robs your armored car, or you receive a forged check or fraudulent wire transaction, money theft happens in many ways. Crime insurance guards your cannabis company against damages from these particular crimes.

Cyber Liability

Cyber insurance protects companies from third-party lawsuits relating to electronic activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.

Employment Practices Liability

Cannabis companies with any number of employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.

Workers' Compensation

Employers are typically responsible for their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.

General Liability

General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.

Crime

Whether employees steal from you, a thief robs your armored car, or you receive a forged check or fraudulent wire transaction, money theft happens in many ways. Crime insurance guards your cannabis company against damages from these particular crimes.

Cyber Liability

Cyber insurance protects companies from third-party lawsuits relating to electronic activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.

Employment Practices Liability

Cannabis companies with any number of employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.

Workers' Compensation

Employers are typically responsible for their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.

Service Provider Specific
Coverage

Professional Liability

Professional liability, also known as errors and omissions (E&O) insurance, covers companies in third-party or client lawsuits claiming substandard work or service. Work errors or oversights, missed deadlines, budget overruns, etc., often result in costly cases — but professional liability insurance responds to these mishaps.

Business Interruption

Business Interruption is a component of a property policy and included in the overall total insurable values (TIV) of your property program. Business Interruption has a few components:  

 

  • Business Income: indemnifies loss of income following a covered loss
  • Business Interruption: indemnifies for only normal business expenses incurred during a time of loss (i.e. rent payments, salaries of important employees, etc.). This DOES NOT includes loss of income, only Business Income offers this indemnification 
  • Extra Expenses: indemnifies for additional expenses incurred by your company in an effort to regain normal business operations

Professional Liability

Professional liability, also known as errors and omissions (E&O) insurance, covers companies in third-party or client lawsuits claiming substandard work or service. Work errors or oversights, missed deadlines, budget overruns, etc., often result in costly cases — but professional liability insurance responds to these mishaps.

Business Interruption

Business Interruption is a component of a property policy and included in the overall total insurable values (TIV) of your property program. Business Interruption has a few components:  

 

  • Business Income: indemnifies loss of income following a covered loss
  • Business Interruption: indemnifies for only normal business expenses incurred during a time of loss (i.e. rent payments, salaries of important employees, etc.). This DOES NOT includes loss of income, only Business Income offers this indemnification 
  • Extra Expenses: indemnifies for additional expenses incurred by your company in an effort to regain normal business operations

Types of Service Providers
That Need Insurance

Accounting

These firms provide companies with various payroll services and sometimes tax services.

IT Services

These companies provide tech support, installing and configuring system software and hardware, among other tasks.

Marketing

These firms typically provide tiers of marketing services, ranging from consulting to writing to designing.

Legal

These firms provide legal guidance to cannabis companies.

Accounting

These firms provide companies with various payroll services and sometimes tax services.

IT Services

These companies provide tech support, installing and configuring system software and hardware, among other tasks.

Marketing

These firms typically provide tiers of marketing services, ranging from consulting to writing to designing.

Read Our Guide

Learn about, common risks in the Cannabis space and how to mitigate them, including licensing, compliance, funding and insurance strategy.

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