Security Caging & Cannabis Insurance

How a Comprehensive Security Plan Can Support Cannabis Insurance Coverage

Is your cannabis business insured? Are you preparing to purchase or renew insurance coverage? For dispensaries, cultivators, processors, manufacturers, testing facilities, and other cannabis businesses, physical security can be an important part of both daily operations and overall risk management.

SecurityCaging.com interviewed Kieran O’Rourke, Vice President and Director of Underwriting at Cannasure, to better understand how physical security measures and secure storage can factor into the insurance process for cannabis businesses.

Cannasure specializes in insurance services for the cannabis industry, including property, liability, and other forms of coverage. Its experience working with dispensaries, cultivators, processors, manufacturers, and other cannabis businesses provides useful insight into how insurers evaluate physical security and loss prevention.

Devise a Security Plan

Building and operating a successful cannabis business presents unique security challenges. Facilities may need to protect valuable inventory, cash, controlled-access areas, equipment, records, and employees while also meeting applicable state or local requirements.

A comprehensive security plan can help reduce those risks. Cameras, alarms, motion sensors, electronic access controls, safes, vaults, security caging, and other physical security measures may all play a role depending on the facility and its specific requirements.

During our interview with O’Rourke, we discussed how secure storage can factor into an insurer’s risk assessment. Businesses that invest in stronger physical security measures may demonstrate that they are actively working to reduce the likelihood and potential severity of a loss.

For an insurer, that risk-management effort matters. Security measures can be considered along with many other factors when determining whether to provide coverage, appropriate coverage limits, and the terms of a policy.

Benefits and rewards for those who go above and beyond

O’Rourke identified several physical security measures that Cannasure considered when evaluating cannabis facilities, including central station alarms, cameras, motion sensors, and secure storage for cash and product.

The specific requirements of an insurance carrier can vary, as can state and local regulations. Some facilities may use heavy safes or vaults, while others may incorporate security cages and controlled-access storage areas as part of a broader security system.

The important point is to develop the security plan early rather than treating physical security as an afterthought.

Cameras and alarms help detect and document unauthorized activity. Electronic access controls help determine who can enter restricted areas. Secure storage creates an additional physical barrier between valuable assets and anyone attempting unauthorized access.

Used together, these measures create layers of protection that can help reduce risk for the business and demonstrate a serious approach to loss prevention.

Safe, Vault, or Security Caging?

The right secure storage solution depends on the needs of the facility.

Consider questions such as:

• What products, cash, equipment, or records need to be secured?
• How much storage space is required?
• Who needs access to the secured area?
• How frequently will employees enter the space?
• What security measures are required by your insurer or governing authority?
• Does the secured area need to expand or change as the business grows?

Safes and vaults can provide high levels of protection for particular applications. Security caging serves a different but complementary purpose, creating controlled-access areas that can encompass considerably more space while allowing visibility, airflow, and flexible configurations.

Wire mesh security cages can be used to protect cannabis inventory, processing areas, equipment, supplies, records, and other restricted materials. They can also be subdivided to create separate access zones for different products, departments, or employees.

Electronic locks and access-control systems can be incorporated into security caging to help facilities manage and document entry into restricted areas.

Build Security Into Your Cannabis Operation

Whether you operate a single dispensary or a large cultivation, processing, testing, or distribution facility, protecting valuable inventory and controlling access should be part of the planning process.

SecurityCaging.com provides customizable wire mesh security systems for cannabis facilities and other applications requiring controlled access and secure storage. Our team can work with you to develop a caging solution based on your available space, workflow, access requirements, and security objectives.

Your insurer, security consultant, and applicable regulatory authorities should help determine the complete security requirements for your operation. SecurityCaging.com can then help design and implement the physical caging components that support that plan.

Contact SecurityCaging.com at 855-942-0274 or visit our Contact us page today!