What calibrated coverage for cannabis looks like for MSO’s.
Software as a Service (SaaS) for cannabis companies is a unique vertical as these technology companies frequently contribute to many other industries. For example, inventory management systems, temperature control systems, online purchasing systems, education platforms, etc., are examples of cannabis-specific SaaS products. Most people think it’s effortless for tech companies to acquire insurance coverage since they’re so widespread; however, coverage is limited. Most traditional carriers underwriting a SaaS model can’t touch a risk that has anything to do with cannabis.
A license to succeed.
State lines. Lines of business. Calibrated coverage means lines of insurance that fit your growth plan.
Business personal property damage can be incredibly costly, from replacing office equipment to repairing high-end equipment. Cannabis SaaS companies must understand their property exposures and protect their assets accordingly.
With data breaches costing companies an average of over $4 million per incident, cybersecurity is of utmost importance to cannabis SaaS companies. Plus, these attacks have become more sophisticated over the years, from ransomware to malware attacks.
If a customer suffers financial loss and alleges your product or service caused the damage, your cannabis SaaS company could be caught in a costly legal battle.
A license to succeed.
State lines. Lines of business. Calibrated coverage means lines of insurance that fit your growth plan.
Business personal property damage can be incredibly costly, from replacing office equipment to repairing high-end equipment. Cannabis SaaS companies must understand their property exposures and protect their assets accordingly.
With data breaches costing companies an average of over $4 million per incident, cybersecurity is of utmost importance to cannabis SaaS companies. Plus, these attacks have become more sophisticated over the years, from ransomware to malware attacks.
If a customer suffers financial loss and alleges your product or service caused the damage, your cannabis SaaS company could be caught in a costly legal battle.
Testimonials
Core Coverage
Directors & Officers
Shareholders, competitors, investors, etc., can sue a company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
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.
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.
Directors & Officers
Shareholders, competitors, investors, etc., can sue a company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
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.
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.
Technology Specific
Coverage
Technology drives most cannabis company’s success in the modern world. If a tech issue arises, such as a newer software causing a third party’s older system to crash, liability becomes a massive problem. Tech E&O, usually teamed with cyber liability, covers legal fees and other related costs in the event of a lawsuit.
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.
This policy is first-party coverage that protects the Total Insurable Value (TIV) of your operation’s property, reimbursing cannabis companies for direct property losses.
Tech E&O
Technology drives most cannabis company’s success in the modern world. If a tech issue arises, such as a newer software causing a third party’s older system to crash, liability becomes a massive problem. Tech E&O, usually teamed with cyber liability, covers legal fees and other related costs in the event of a lawsuit.
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.
Property
This policy is first-party coverage that protects the Total Insurable Value (TIV) of your operation’s property, reimbursing cannabis companies for direct property losses.
Types of Technology Companies
That Need Insurance
Financial Services
With continued SAFE advancements, banks and credit unions move into the cash-only cannabis space using SaaS solutions to stabilize many regulatory risks.
CMPs
Cultivation management platforms (CMPs) can be integrated into various seed-to-sale offerings to help cultivators maintain compliance and technical planning using real-time big data analytics.
SaaS
SaaS companies can provide real-time market data, encouraging actionable insights to bolster sales and marketing efforts.
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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FAQ's
More often than not, the premium is a function of company revenue. Changes in revenue will often be the driving factor for increase or decreases in cost on renewal.
How carriers determine premium depends entirely on the industry, for example:
- Tech E&O policies may look at revenue in conjunction with monthly average users.
- Allied health/malpractice premiums will be guided by the number of covered care providers.
- A tour guide’s E&O policy may be rated on “hours”: hours per tour x number of customers per tour x number of tours per year.
Many other variables impact the cost of this coverage, such as:
- Location
- Claims history
- Policy limits