Understanding the Challenges there are in the Cannabis Industry when it Comes to Risk Management and Solutions for these
This post takes a look at some of the challenges that risk professionals happen to face when it comes to the cannabis laws in the United States. When you look at the state and federal laws regarding cannabis and the industry at large, one thing that we see is the fact that there is some sort of disconnect in these laws and as a result of this disconnect, players in the cannabis industry, from the risk professionals representing the cannabis businesses, to the landlords and landowners who may have some interest or involvement in some way with the cannabis industry, have been faced with a challenge when it comes to these laws and their application.
By far and away, in as much as the possession and use of marijuana has been legalized, either in part or fully, in many states in the United States, when it comes to the federal laws, it is still classified under the Controlled Substances Act as a “Schedule 1 Narcotic”. As a result of this disconnect, there has been some kind of conflict when it comes to the interpretation of the law regarding cannabis and as a result of this, there are a number of companies that have found themselves at the risk of breaking the law, albeit unwittingly.
The developments related to the cannabis industry have been a subject of monitor by a number, legal experts and players in the industry for some time now. In actual sense, the cannabis industry is still considered to be an industry in evolution and quite nascent and as a result of this, the failure to have absolutes when it comes to the interpretation and application of the law on the industry happens to be such a grave challenge to the players. But this guide attempts to provide some way for the players to find their way through this industry in spite of the challenges there may be.
One of the many challenges that players in the legal marijuana industry have had to confront and deal with as they go about their trade is that of insurance, one of the risk management needs that any business needs to provide for as a going concern. By and large, there has been a general feeling and a need for a dedicated insurance provider for the players in the legal marijuana business and this is more so looking at the fact that the packages that are availed and provided by the traditional insurers have in a way proved to be falling short of the needs for the players in the industry. One of the establishments that have come in to offer a specialty solution when it comes to insurance products for the players in the medical cannabis industry is the National Cannabis Risk Management Association, NCRMA.