Two Short Insurance Videos: Mosaic Insurance Alliance Talks About Coverage Options
A single case of vandalism can cost a business owner thousands of dollars, the average being $3,370 according to the U.S. Small Business Administration.
In 2020, at least 43 cannabis companies were vandalized and looted during the George Floyd rioting alone according to TheCrimeReport.org. Nug, a cannabis extraction facility in California, lost $2 million during the riot, and they were not the only ones who got hit hard. MJBizDaily talks about different cannabis stores trying to get back on their feet from that big blow here. Also, Cannabis Now, talks about their Los Angeles cannabis retail store that got completely looted. Their story accompanied by after pictures really hit home for Mosaic Insurance since we have a lot of cannabis clients like the Cannabis Now retail store.
We know how important it is to get the right coverage, and we know how long the impact of a claim can last for a company. It can even destroy it. A year later, some business owners are still feeling the impact just from the George Floyd rallying, not even considering other crimes that happen throughout a given year.
The bottom line? Anything can happen—your business could get targeted randomly as a means of convenience for a criminal, or there might be something like a widespread riot. Something could happen tomorrow like the George Floyd incident where you company takes backlash for something completely unrelated to you. Getting the right insurance can help you protect your business from the unknown—that is why insurance exists. Mosaic insurance professionals can help you get the right coverage so that if a claim were to happen, you will have something that can protect you and what you worked so hard to build.
Is Vandalism an Insured Risk?
Yes, there is insurance that you can purchase to cover vandalism and other similar loss like theft and damages due to rioting. The quick answer is: You are probably covered if you have property insurance. Watch Mosaic’s Cannabis Program Director, Steve Boone, for more information in the video below, or via YouTube.
Please keep in mind that it is important to always consult with your insurance agent to make sure that you understand what is considered a covered loss on your policies and at what limit. Confirm with your insurance company if vandalism, damages due to rioting, and theft are covered losses on your current insurance, and how to get them if they are currently not covered (or not covered at the right limit). If you have any concerns that your insurance is not meeting your needs, our independent insurance agents are happy to answer any questions and take a look at your options. We are experts at building policies for a client’s specific needs.
What Can Protect Your Cannabis Business Against Theft?
If a crook wants something bad enough, there is only so much you can do to avoid theft. Yes, it is always great to practice safety protocols that avoid drawing attention to criminals and keep them from wanting to attempt a crime—i.e., security cameras, alarm systems, guards, not leaving items in company vehicles overnight, hiding window displays after hours, etc. But what if you have someone who is just relentless and will attack regardless of what you have done to try to prevent it?
That is where cannabis theft insurance comes in—to protect your investments against the unwanted and the inevitable. To protect what belongs to you, it is important to know your specific situation needs. Cannabis theft insurance is very specific, and Mosaic can help you sort through your policies. Watch Steve’s video below for a general overview. You can also watch the video here on our YouTube Cannabis Insurance 411 playlist. In the video, Steve will tell you some top things to know about cannabis theft coverage. You can also read Steve’s article about theft coverage here for further insight. Give him a call at the number below if you would like to know specifics for your situation.
What happens if you are the victim of vandalism/theft and end up needing to file a claim?
Documentation is key. Immediately report the claim to your insurance company.
Afterwards, as soon as possible, we recommend that you do the following actions and send the resulting information to your insurance company:
1. Pictures of the losses/damages
2. The steps you took to secure the property (secure doors, board up windows, etc.)
3. Receipts of purchases due to the claim (contractor fees, replacement locks, lost product, etc.).
4. Replace the products that were damaged/stolen and keep the receipts.
5. File a police report and get a copy of it, along with the case number and names of the responding officer(s). Pictures taken at the scene by police are something that you will also want to have done, and you will want to get copies of them afterwards.