Cyber Insurance for the Cannabis Industry
Farella's Shanti Eagle (moderator), Nate Garhart and Tyler Gerking, along with guest speakers Javier Gonzalez and Michael Peters from PL Risk Advisors, discuss "Cyber Insurance for the Cannabis Industry."
Cannabis businesses have cyber security and privacy risks. While the risks are varied, many arise from the businesses’ holding of highly sensitive consumer information or confidential data about business partners. Cannabis business operations also rely on technology, which if taken offline unexpectedly could cause serious disruption and revenue losses. The loss or exposure of confidential information or significant business interruption could result in lost profits, extortion demands, investigations, litigation or regulatory actions. Many of these risks are covered by cyber insurance.
Cannabis businesses should try to negotiate the broadest terms possible for their cyber insurance policies. Cannabis businesses, as well as their brokers and attorneys, need to understand the unique needs of this industry in negotiating cyber insurance policies.
Discussion includes cyber insurance trends, privacy laws and potential pitfalls for cannabis businesses to proactively address when buying their insurance.