(800) 869-8643

admin@hayesbrokers.com

Hayes Insurance Attends Legal Conference

In February 2017, Galen Hayes and his team were asked to meet with California attorneys who wish to better serve the cannabis community. The conference was held in San Francisco, and was also attended via teleconference by lawyers in Los Angeles. These legal firms sought to better understand the unique challenges of cannabis-related industries. In particular, they wanted to discuss various types of insurance coverage and the protection those policies offer to both medical and recreational marijuana operations. Among the questions asked was whether marijuana businesses may obtain insurance coverage for governmental action. At this time, this coverage is not available to this business sector, but as the legality of medical and recreational marijuana continues to spread across the country, it is believed that this coverage will become available. There is still quite a bit of risk involved with marijuana operations, as this industry is still not legal at the federal level. It is important that cannabis industry owners and operators retain the counsel of competent attorneys, as well as proper insurance coverage through the most knowledgable brokers in the industry, Hayes...
Marijuana and Your Workplace

Marijuana and Your Workplace

It has been 4 years since cannabis was first legalized for recreational use in Colorado and Washington, followed shortly by Alaska and Oregon. In that time, the insurance industry has learned a lot about how cannabis usage affects business insurance in those states. Questions about employee rights, the legality of drug testing post-hire and other human resources issues should always be handled by an experienced human resources (HR) professional or qualified labor attorney.  While Hayes Brokers are not legal professionals, we can advise on the insurance aspects of cannabis use in the workplace. Here is how marijuana usage on the job may affect your insurance policies and premiums: Can You Get Insured or Bonded? As the legalization of marijuana continues across the country, insurance companies may begin to include questions about drug free programs and marijuana usage on applications as part of the underwriting process. A strict company policy on these issues will make these questions easier to answer. An employer’s main concern should be providing a safe work environment that also allows for the completion of projects in a timely manner. Recreational marijuana usage by employees may affect a company’s ability to do so. Failure to perform as required by contractual obligations may result in your bonding company nonrenewing your bonds. Finding replacement bonds when nonrenewed for this reason may not be possible, or may come at increased cost. Large or frequent claims may result in nonrenewals or declinations of coverage by liability insurance companies, as well. Impaired employees can contribute to both of these, costing employers in increased insurance premiums for anywhere from 3-5 years from the...
The Future of Marijuana Insurance

The Future of Marijuana Insurance

In just a few short months, the last of those Lloyds of London cannabis industry insurance policies will roll off the books and into history. What does that mean for the future of marijuana insurance? What does it mean for your policies? Profitability vs. The Political Machine When Lloyds left the industry, many thought it was due to high numbers of claims or revenue losses on their policies. However, the market position for Lloyds was a good one, and by all accounts the book of business was profitable. So why leave? The company line was that Lloyds was exiting until the cannabis industry was legalized on a federal level. Of course, a major insurance syndicate pulling out of the market is indicative of some strong backstage political machinations on both sides. Who Will Replace Lloyds? Of course, Lloyds wasn’t the only insurer to provide policies to cannabis growers and distributors, but it was certainly the largest. Other insurers familiar to the industry are stepping up to take on the policies being nonrenewed by Lloyds. They aren’t the only ones. New insurers are entering the marketpace, eager to get their fair share of the policies being nonrenewed. They are also looking to take on new business being created by the increasing legality of cannabis across the country. Unfortunately, more insurers and more competition for business isn’t driving down the premium. In fact, the opposite is true.  Those businesses who lost their Lloyds policies know what you are probably going to find out soon – premiums are going up.  Here’s a good reason why: The Industry Is Maturing As the legal...
MMJ Product Recall

MMJ Product Recall

Since cannabis transactions are still only performed in about half of the United States, it seemed that the industry was immune to what other U.S. businesses are facing on a near daily basis: product recall. That is changing.  In Colorado there were 16 product recalls from September through December 2015 covering hundreds of products including candies, concentrates and oils. Most of these product recalls were due to pesticides.  This looks to be just the tip of the iceberg. While products liability insurance will often cover claims and lawsuits for bodily injury and property damage due to faulty products, there is still the matter of all of the other products that were manufactured at the same time or in the same way. Because these products have the potential to cause similar bodily injury or property damage, they would trigger a product recall. Product recall is not covered under products liability insurance, so a separate product recall insurance policy is required. What Is Product Recall Insurance? The cost to businesses to recall or repair faulty product can add up quickly. Consider the costs to do the following: Notify distributors and retailers about the faulty product. Remove the product from store shelves. Reimburse the distributor and/or retailer for the product. Reimburse consumers who purchased the product prior to recall. Transport the product back to the manufacturer. Repair the faulty product or destroy it. Current and future lost revenues due to damaged reputation. From first notification to recall to regaining consumer trust, product recall insurance is designed to protect your business in the event of a faulty or hazardous product. Do You Have...
Marijuana in the Workplace

Marijuana in the Workplace

As cannabis legalization sweeps across the country, those who use the substance are applauding. However, those who employ these users are now left wondering how to navigate the minefield of legal usage of a substance that was once illegal. Questions about employee rights, the legality of drug testing post-hire and other human resources issues should always be handled by an experienced HR professional or qualified labor attorney.  While Hayes Brokers are not legal professionals, we can advise on the insurance aspects of cannabis use in the workplace. Here is how marijuana usage on the job may affect your insurance policies and premiums: Can You Get Insured or Bonded? Liability insurers and bonding companies typically do not ask for evidence of drug-free employees before insuring a business for liability.  However, an employer’s main concern should be providing a safe work environment that also allows for the completion of projects in a timely manner pursuant to contract. Bonding companies may nonrenew bonds or decline to insure contractors who habitually fail to perform their contractual obligations.  Liability insurance companies may also nonrenew or decline to write policies for any business that has large or frequent claims.  Impaired employees can contribute to both of these, costing employers in increased insurance premiums for years to come. As the legalization of marijuana continues across the country, insurance companies may begin to include questions about drug free programs and marijuana usage on applications as part of the underwriting process. A strict company policy on these issues will make these questions easier to answer. How Will Your Workers Compensation Coverage Be Affected? Workers Compensations pays claims on...