There’s such a thing as too much information, and Washington state cannabis businesses may have learned that the hard way.
The Washington State Liquor and Cannabis Board (LCB) website used to feature a map of all cannabis businesses in the state, not just retail outlets but also industrial facilities. But after the end of 2019 saw a spike in burglaries, many producers and processors were worried the state’s map was essentially a treasure map for burglars to follow. While there has been no official connection between the map and the burglaries, the LCB decided to take down the map, just in case.
Although the map is no longer available, the information still technically is. Washington state has good public records laws that give anyone access to public information. When you are a licensed cannabis business, your address and even site plans can be public records that only require someone request them. Even so, cannabis companies felt like the map was a target painted on their back.
There are some theories in the media that the burglaries are somehow tied to the state’s track-and-trace system, but there has not been any evidence of that so far.
Several cannabis producers and processors were targeted by burglars that focused on grabbing product, cash and equipment. Cannabis theft claims dominate the insurance claims made by cannabis companies, and they won’t be just needing to replace equipment and recover from the loss of revenue. Property is often damaged during the burglaries, leading to even higher costs to return to operation.
That’s why getting the right insurance policy that covers your business is so important. If there are unknown gaps in your cannabis coverage, then you could be caught paying out of pocket after a burglary. It isn’t just Washington state that has seen more burglaries, either. California saw a rise in burglaries of cannabis businesses in 2019, and Denver alone saw six armed robberies in just two months. Even just one week into legalization in Chicago, a cannabis dispensary was targeted. (Not all thieves are lucky, though. Some go home with the wrong type of herb.)
It can be difficult to get the right insurance coverage, however. Not all insurance companies understand the ins-and-outs of the cannabis industry, and some won’t offer the coverage that you need at a reasonable price. Rates have remained high because of the perceived risk of working with an industry that is still technically illegal on a federal level, as well as the many unknown factors for such a young industry.
There was a bill being pushed in Congress called the Clarifying Law Around Insurance of Marijuana (CLAIM) Act that would have given the insurance industry the ability to work freely with licensed cannabis businesses. With less risk comes lower premiums. Though the CLAIM Act did not move forward after being introduced, many of its provisions were incorporated into the Secure and Fair Enforcement (SAFE) Banking Act. While the SAFE Banking Act passed the House of Representatives, its fate is unsure in the hands of the Senate.
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