NEW YORK – Intellectual Property Insurance and Cyber Coverage are important to them in the cannabis industry, according to Aon PLC Vice President Geoff Pope, who speaks Thursday at Cannabis World Congress and Business Exposition in New York.
Tires for such "Critical Risks," says Pope, may be just as important for a cannabis business as their property tire but cannot be on everyone's radar.
"Believe it or not, there are lots of intellectual property rights in the cannabis space," Mr Pope, who works with insurance programs for cannabis risks, told the audience. "We see implementation patents, process patents, business secrets."
Cyber is another important coverage for those in the cannabis space to consider, Pope said.
Collection of personal data from customers on dispensers could "Lead to large cyber claims," urged Mr Pope.
In the medical marijuana area, the collection of data and information from patients will fall under the direction of HIPAA, the Health Insurance and Liability Act of 1
A HIPAA data violation can be twice as expensive to respond to as a non-HIPAA cyber crime, Mr. Pope said.
Those in the cannabis space should also consider members and officials, although many companies are private, says Pope, adding managers and officials is insurance not only for public companies.
He suggested that since leaders and officials of a private company can often be more involved in the day-to-day business and decisions of a private company, these decisions could be subject to control together with those who make the decisions.
He added that because of the conflict between the illegal federal status of marijuana and state status in the United States, cannabis companies in the United States cannot go public because they can do in Canada.