Technology is an essential asset to help cannabis operations run smoothly. However, it does come with risks that could leave the company exposed to significant cyber threats. This is where a strong cannabis cyber insurance policy can help cover this exposure by providing 1st party (your business) and 3rd party (liability) coverage. Below we will go over who needs it and some of the basics that are covered under the policy:
Who needs cannabis cyber insurance coverage?
- Cultivators
- Distributors
- Testing Laboratories
- Dispensaries
- Manufacturers
What’s Covered under a cannabis cyber policy?
First Party (Losses to Your Company)
- Cyber extortion, aka ransomware payments
- Business interruption or system failure
- Data restoration costs
- Extra expense
- Bricking Coverage, covers cost to repair or replace computer hardware and equipment
Third Party (Cyber Liability from Other People)
- Covers attorney fees
- Payment card industry fines and assessments
- Regulatory fines
Breach Costs
- Covers costs of computer security experts to analyze the damage
- Covers attorney fees to evaluate the company’s legal obligations
- Notification costs, includes credit monitoring to effected individuals or entities
- Cost of public relations or crisis management team to mitigate fallout
Multimedia Liability
- Protects from lawsuits due to trademark infringement
- Infringement of tradenames
- Defamation, libel and slander
E-Crime
- Social engineering loss (Phishing) and fraudulent wire transfer,
- Funds transfer fraud and telephone fraud.
To answer any questions you may have on how this coverage works, how to get it and what it costs, please feel free to call or email me and I will get right on it for you!
Contact Us for more info
Byron Johnston
619.668.2361
bjohnston@teagueins.com