No matter what your company needs, we’ve got you covered.

 

General Liability Insurance

General liability (GL) insurance protects your company from some of the fundamental risks that come with running a business, regardless of industry. If you’re sued by a third party for causing bodily injury, property damage, personal injury or advertising injury, a general liability will likely be your best resource.

Most companies think of GL as coverage for the classic “slip and fall” scenario, but that doesn’t tell the whole story. Damage to rented office space (or “fire legal liability”) is a part of GL coverage as well. Allegations of personal injury (like defamation or malicious prosecution) and advertising injury (like copyright infringement in an email to customers) would also likely be covered.

Products and completed operations liability is another pillar of this coverage. Companies in the cannabis and agtech spaces are particularly exposed to claims of bodily injury or property damage from the use of their products. . Wherever you are on the supply chain — manufacturer, distributor, retailer or otherwise — it’s a risk that most companies just can’t afford. GL insurance will help you manage risk. Read more…

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Property Insurance

Property insurance is the right policy for any cannabis or agtech company that owns physical property. And since almost all companies own computers, furniture, equipment, or some other tangible property, it’s one of the most common insurance policies.

Even companies that haven’t poured money in tangible items have exposure to risks that can be addressed by a property insurance policy. What if there is a fire at your office? There are going to be plenty of surprise costs like leasing temporary working space, not to mention the cost of an interruption to normal business operations. Many landlords even require this policy as a condition of their lease.

Coverage can be tweaked and tailored in a way that covers all of your company’s exposures without forcing you to overpay. Read more…

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Directors & Officers Insurance

Directors & officers insurance (D&O) is almost always required by the terms of an institutional round of funding. Even some seed and angel investors require it these days.

D&O protects the cannabis company and its management from certain disputes related to the way the company is run. If investors sue because they feel you breached your duties of care and loyalty to the company, you could look to a D&O policy for coverage. Complaints of unfair business practices from competitors can also be picked up by this policy. What if the business is investigated for securities violations? You’ll want to have D&O in place before that happens.

D&O claims are common. Whether it’s a civil suit or a regulatory action, there will be huge costs in responding to subpoenas, organizing a legal defense and potentially settling with the plaintiff or agency. You, your investors and your board members will all rest easier knowing there’s an insurance policy providing a safety net. Read more…

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Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is another type of management liability insurance. Just like D&O, EPLI protects the company from certain risks created by leadership decisions. The difference is that EPLI focuses on exposures related to hiring and managing employees.

Companies can get caught up in rapid growth at the expense of good HR practices. Accusations of sexual harassment, retaliation, wrongful termination, and discriminatory hiring/firing practices are more likely for these companies. But you’re not completely out of the woods even if you have the perfect HR controls in place. In rare instances, angry employees have filed frivolous suits.Their employers still had to pay to defend themselves in court.

EPLI helps to lessen the impact of these suits by paying defense costs, settlements and judgements against the company or its leadership. But it’s not a ‘get out of jail free’ card for bad bosses. (Remember: intentional acts aren’t covered by insurance). Rather, the EPLI policy is designed to be an investment for cannabis and agtech companies that have tried in earnest to manage people properly but still find themselves in an employment dispute. Read more…

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Errors & Omissions Insurance

Errors & omissions insurance (E&O) is also called “professional liability insurance.” Think of it as malpractice insurance for your cannabis or agtech business.

The disputes covered by this policy focus on the professional service you provide. If there’s some perceived failure in your service and customers lose money, an E&O policy can defend against the lawsuits that follow. GL, D&O and other policies probably wouldn’t cover these claims.

Say your company provides predictive analytics based on satellite imagery. If you make a mistake or misinterpret data which then causes farmers or investors to lose money, you could be held liable. Or perhaps you’re a marketplace that connects manufacturers and retailers of cannabis peripherals with customers. If your platform has a bug or, worse, goes down, you could have some very angry companies on your hands.

Every doctor has a malpractice policy because it really doesn’t matter how careful you are. People make mistakes! Sometimes you even get sued when you don’t make a mistake. These risks are no less real for a business. It’s just as important to have the right protections in place. Read more…

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Cyber Liability Insurance

No insurance policy has been in the headlines recently like this one has. Data breaches, hacks, DDoS, and spear phishing schemes are happening all the time. Companies both big and small; it doesn’t matter. When a cyber event happens, you’re going to have some steep costs ahead of you both in terms of liability to others and losses you experience yourself.

Imagine a hacker penetrates your system or an employee leaves his laptop in the backseat of a taxi. If personally identifiable information (PII) is lost, you could be facing civil suits, investigations and fines/penalties from multiple levels of government. You’ll have to hire a lawyer, notify users, provide credit monitoring…the list goes on.

What about cyber extortion? Or a black hat who extorts you or destroys data, forcing you to shut down temporarily? The costs of dealing with cyber security firms, PR consultants and data restoration professionals — not to mention income you lost and payroll you spent during the downtime — are going to skyrocket.

The right cyber insurance can cover all of these costs. Since (depending on the jurisdiction) “PII” can include relatively harmless info like IP addresses, this is one of the most important policies the insurance industry offers cannabis companies today. Read more…

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Crime Insurance

Nobody thinks they’ll be the victim of a crime until they are. Businesses are no different. Billions of dollars are stolen from companies each year . How about an insurance policy that addresses this?

Crime insurance does exactly that by reimbursing companies for stolen money, securities and other tangible property. These types of losses happen every day. Cash-intensive businesses in the cannabis industry have some of the most clearcut exposure but all companies are at risk.

Employees can create dummy vendor accounts and embezzle money over time. . The office can be burglarized. Accountants could accidentally accept forged or counterfeit money or checks. Criminals can use targeted wire transfer and computer fraud schemes.

The number of ways criminals can attack your company is staggering. The question is, do you want to wait for police to (hopefully) recover some or all of your lost money? Or would you rather have an insurance company cut you a check and then let them deal with the rest? Read more…

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Workers Compensation Insurance

If GL is “slip and fall” insurance for third parties, workers comp is the “slip and fall” insurance for your team. This policy will pay an employee directly if they’re injured while on the job and no longer able to work.

Some policies also offer employers liability insurance. This would be activated if an employee sued the company for its role in the injury and the company had to defend itself in court.

Most states demand that you to go out and buy a workers comp policy. Some states send you to the private market. Others administer their own mandatory workers comp program and still others provide complete exemptions under certain circumstances.

Then there’s the question of whether or not you need to cover executives, 1099’s, part time employees, remote employees in other states…it can get complex but we’re here to help you find the policy that fits your needs. Read more…

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Key Person Insurance

Most cannabis businesses look for key person (or “key man”) insurance because it’s required by their investors. It makes sense. Shareholders want to be sure that they’re protected if the worst of the worst case scenarios occurs.

Others buy the policy for strategic purposes. Maybe they have a team member who’s vital to operations. These are folks whose absence would jeopardize the future of the company.

Key person insurance is like life insurance. It pays out to a beneficiary (such as the company or an investor) if a specified key person dies or disappears. Some policies also offer coverage for illness and short-term or long-term disability. The money can be reinvested in the company to cover recruiting costs and help maintain stability. Or, in the case of an investor beneficiary, the money can be used to offset a devaluation of the company.

We’re dedicated to helping founders get the right insurance so we developed our own proprietary key person product that makes that process easier. Read more…

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Disability Insurance and Ancillary Benefits

Disability insurance is another state-required insurance for companies that have employees on payroll. AlphaRoot now offers not only the legally required disability insurance coverage, but also a full suite of ancillary benefits for your employees (such as dental, vision, and extra medical support). Read more…

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Health and Employee Benefits Insurance

The laws are changing in this area, and new options are hitting the market that make it easy to get great [affordable] coverage for your employees that both of you will be satisfied with. Just give us a shout to find out more…