Hello Growers Network,
As the Cannabis industry grows larger and stronger, many businesses seem to have difficulties mitigating their risks . I am curious to see what sort of Risks businesses are facing or the risks businesses are projecting for the forthcoming future. Please contact me as not only would I like to hear your stories and experiences but hopefully help and discuss how I can help in reducing the risks that can come across in the industry. Please, everyone is welcome to Share!
How about this question…what are you finding in terms of inland marine coverage for the transportation of cannabis by a licensed Distributor, say in California for the risk of seizure of cargo by law enforcement. Let’s stipulate that the proper paperwork is in place proving that the medicine is legal, the Cultivator and Distributor providing the transportation are both licensed and legit.
Is anyone currently writing coverage for the risk, and what is the approximate cost let, say per $10K of value?
Hi Jordan, is the medical marijuana being transported Intra-State, Inter-State, or Exported out of the State of California? Please let me know, I may have someone who can write the risk.
Let’s assume that the Distributor is moving it to their depot for either:
Testing, packaging, and labeling a flower for further sale to a dispensary or
Further processing for trim to extract oil by a licensed Manufacturer in an adjacent facility.
As it would clearly be illegal, the medicine NEVER leaves the state of California as interstate transportation is not permitted under the license.
The Distributor has a regularly scheduled route for pick up in Humboldt County and from which it is transported to depots Oakland and Long Beach with Extraction performed in Oakland, and onward, the product is delivered to licensed Dispensaries throughout California.
If there are dollar values limitations of total cargo for a run that would be useful to know as well.
We can also stipulate that commercial manifests, invoices and receipts are fully compliant with all applicable transportation regulations.
Hi Jordan,
The risk (which can be insured!) of seizure by law enforcement officers would only protect the distributors form Local Law enforcement only. Any federal law enforcement agency would be excluded in the policy.
David Rahn
Broker
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I will reach out and contact you.
Great Looking forward to speaking with you.
