This in-depth discussion with Jay Virdi, the Chief Sales Officer for Specialty Practices at Hub International, provides a comprehensive overview of the insurance landscape for the cannabis industry in 2025.

The cannabis industry faces unique financial pressures, including inflation, rising interest rates, and specific tax burdens like the 280E tax code. Jay Virdi emphasizes the need for robust risk management strategies to navigate these challenges and ensure business continuity. He outlines the various insurable risks cannabis companies must consider, from property damage and business interruption to directors and officers liability. Virdi also explores alternative risk transfer options, such as captives, risk retention groups, and parametric insurance, offering innovative solutions for companies seeking to optimize their risk management approach.

With the increasing reliance on technology, cybersecurity is paramount for cannabis businesses. Virdi stresses the importance of strong cybersecurity protocols and data protection measures to safeguard sensitive information and maintain business operations. He highlights the potential consequences of cyber breaches and encourages investment in cybersecurity infrastructure.

Beyond financial and operational risks, Virdi underscores the importance of protecting a company's most valuable asset: its people. He advocates for comprehensive employee benefits policies and a strong focus on employee well-being, recognizing the crucial role a healthy and engaged workforce plays in overall business success.

Product safety and liability are also critical concerns for cannabis companies. Virdi discusses the importance of implementing a robust risk mitigation strategy and securing adequate insurance coverage to protect against potential liabilities. He cautions against the risks of operating without liability insurance, highlighting the potential for catastrophic financial losses in the event of an incident.

Looking ahead, Virdi and our host discuss the future of the cannabis industry, including its growth trajectory, the evolving regulatory landscape, and the potential impact of policy changes such as the anticipated rescheduling of cannabis by the DEA. Virdi emphasizes the need for ongoing adaptation, innovation, and a proactive approach to risk management to thrive in this dynamic market.

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Insuring the Future of Cannabis: A Conversation with Jay Virdi

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