As the cannabis industry has expanded and become more mainstream, there have been an increasing number of data breaches and cyber-attacks. Many companies have been victims of these attacks, paying higher insurance premiums, lawsuits, fines, etc. But with a Cannabis Cyber Liability policy in place, you can protect yourself from these threats by protecting yourself against potential losses.
The policy can cover things like:
- Data breaches
- Cyber crimes like ransomware or DDoS attacks (distributed denial-of-service)
- Security consulting services
Why do you need a Cannabis cyber liability policy?
You need a cannabis cyber liability policy because it protects you against data breaches and cyber crimes, which are becoming increasingly common. If your data has been compromised or hackers are attacking your business, you could be liable for damages resulting from the breach. A cyber liability policy also helps protect your customers and employees by providing them with peace of mind that their information is secure. With a good policy, you can ensure that all team members understand how to keep themselves safe online and protect their devices from malicious viruses or malware attacks.
The last reason businesses in this industry need to get covered under such policies is that they may be required by law to do so, depending on where they’re located within Canada (or even internationally). Some companies may not realize how important these policies are; however, it’s vital for all businesses looking after sensitive information about customers’ details—or who wish to comply with regulations put forth by provincial governments—to ensure they have adequate coverage when it comes time for renewal each year.
How to get a Cannabis cyber liability policy?
- Find a good insurance company: Many insurance companies can offer you a cannabis cyber liability policy, but not all of them have experience in the cannabis industry. Make sure that the company you choose has experience with this type of risk and has previously dealt with similar claims. You should also ask your broker (or insurance agent) if they have ever handled a claim like yours or if they know anyone who has.
- Read their policy carefully: Once you’ve found an insurer willing to provide coverage, it’s important to read their policy before signing anything or making any payments. This is especially true for cyber policies since most of them contain exclusions that may prevent certain types of losses from being covered by your policy—or at least limit how much you can recover from your carrier after submitting a claim.
- Make sure they cover what matters most: Cyber liability policies generally come in one of two types: (1) general purpose policies that offer coverage for virtually any kind of loss related to cyberattacks or other digital incidents; or (2) specific purpose policies designed specifically for cannabis businesses looking exclusively at losses related solely to those industries’ unique risks—such as theft due to employee negligence during transfers between dispensaries and growers/processors; security breaches due to employees opening phishing emails; etcetera).
While both kinds protect against loss events caused by hackers trying to exploit weaknesses within systems owned by third parties contracted by marijuana enterprises such as growers/producers/processors, including software providers like Microsoft Office 365, which acts like a cloud storage tool used by many businesses today – only specific purpose options will cover those same losses incurred directly on premises owned by owners themselves.
The medical marijuana industry is a growing and lucrative one. The use of cannabis continues to rise, and with it, so does the need for cyber liability policies. You must protect yourself against data breaches and cyber crimes because if a hacker steals your information or uses it maliciously, there could be serious consequences.
