Plant-touching cannabis enterprises may pay anywhere from 65-85% in taxes on pre-tax revenues. (Photo: Mary's Medicinals, LLC)
The first two installments of this series examined some of the areas of insurance affected by the legalization of marijuana and took an in-depth look at the challenges facing many of these new cannabis-related businesses. While they operate similarly to other commercial enterprises, they also have very unique risks because of the nature of their companies and the value of their products.
- Legalized marijuana: Opportunity or time bomb? – Part 1
- Examining the risks of legalized marijuana — Part 2
As cash-based businesses, they have a higher risk of theft from employees and outsiders. Since many were started without bank loans or other traditional funding, the owners have a great deal invested in their company's success or failure.
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Patricia L. Harman
Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]
