2 Things To Know About Cyber Liability Insurance For Cannabis Dispensaries
If you run a cannabis dispensary, then you will need various types of insurance coverage. While much of your coverage deals with your brick-and-mortar needs, you should also take care of your cyber liability responsibilities.
Cyber liability insurance gives you protection if your website or computer system is hacked. When this happens, you might lose access to your system; hackers might also steal customer data. Cyber insurance helps you recover from these attacks.
Before you choose a policy, however, you need to understand how your business sector affects cyber liability coverage. Read on to learn more.
1. Cyber Liability Matters in Your Sector
Your store might have state-of-the-art security to keep your staff and stock safe; however, this doesn't mean that you are not at risk. The cannabis sector is attractive to cyber criminals. You might be at a higher risk of being targeted because of the data you hold in your computer network.
Your state regulations dictate that you have to take a lot of sensitive information from your customers. For example, you might store names, addresses, and driver's license numbers. If you operate a medical marijuana dispensary, then you could also store private medical records.
All of this information has a high financial value to cyber criminals. They might target your store. If they do, then affected customers could file lawsuits against you, and your business will suffer reputational damage. Cyber liability helps protect you against these problems.
2. Not All Policies Cover the Cannabis Sector
If you have a cyber security breach, then you'll experience the same problems as any other business in this situation. However, insurance companies might treat your claim differently because you work in the cannabis sector.
Some general cyber liability policies might include exclusions that affect your claims. Even if you can legally operate in your state, an insurance company might not pay out on a claim if their coverage includes exclusions for illegal activities. The legal sale of cannabis is a relatively new concept, and some insurers are still adjusting their policies.
So, make sure to read the terms, conditions, and exclusions of any policy before you buy coverage. Check that the insurer will work with companies in the cannabis sector.
Or, to make things easier, look for specialized cannabis cyber liabilities policies. These policies are designed to protect people who work in your sector, so you shouldn't have any exclusion problems. You should get cheaper and more effective coverage from a policy that is designed for your business.
To find out more, contact a company like Millers Insurance Group.