Cannabis Insurance Claims Dominated By ’Inside’ Theft Jobs

 Wednesday, March 25, 2020

 Insurance Business

Theft remains by far the biggest concern for both marijuana and hemp businesses in the United States. The nature of the product and its popularity on the black market make it a prime target for petty and organized crime.

This is painfully clear in cannabis insurance claims data, which has been dominated by theft-related issues thus far.

“About 90% of the theft claims I’ve seen in the cannabis insurance space have been an internal problem,” said Chris Boden, cannabis practice group team leader at Crouse and Associates Insurance Services, a California-based wholesale insurance broker.

“Oftentimes, a theft or a robbery occurs right after the cultivation harvest is complete, the product is dried and cured, and it’s just about to be transferred to the wholesaler. This suggests an inside job, because they knew exactly when to come, exactly what to do, and exactly where the product is being held.”
Excess & Surplus Lines