Insurance for cannabis events is very challenging!
The CRA mandates that Temporary Marijuana Events apply for their state licensing no later than 90 days prior to the event. On its face, this mandate seems to have little interplay with the insurance requirement. The inconvenient interplay becomes clear however after you discover that event insurance policies are usually written within 30 days of the date of the event.
When temporary cannabis consumption events were brand new, 2-years ago, actuaries had limited datasets to work with. Therefore, they had difficulties creating the risk tables and other tools needed to complete their assessments. Such uncertainty creates cost runs in the insurance industry. However, now they have 24 months of data, so there is no excuse for the high premiums. This means that finding the right partners for insurance within the industry is vital, unless you are willing to spend 2-3x more for basic coverage.
A good relationship with local regulators is key!
Your host municipality takes the job of public safety seriously, and rightly so! The local Fire Marshal, Parks Director, EMT’s, and Police are there to give you advice or ask you questions. These professionals know their community better than you can hope to as an event organizer or participating vendor. So, pay close attention to their input and you will have a more successful event because of it.
Not only can these officials help you understand the community and put on a good event, but they also have the power to shut your event down at a moment’s notice if they feel the public safety is at risk. So ignore their input at your own risk!
Don’t be afraid to ask for help!
Events are tough, and throwing a licensed temporary marijuana event can prove to be even more challenging. Small or large, a successful event will call on help from vendors, volunteers, and the community at large. Don’t shy away from asking local businesses, officials, and volunteer organizations to help out at your event in exchange for sponsorship promotions, tickets, or other exchange opportunities you can reach an agreement on.
Good help can make the difference between a successful event, and a flop. Be brave and ask for what you need. You’ll be surprised how often the answer is ‘yes.’
Make sure you’ve got a solid application!
The state application for cannabis events is quite extensive. From Product Storage & Handling plans and complex insurance requirements, to Responsible Operations plans and proper waste handling practices, there are a lot of plans and SOPs required in your application to hold a licensed temporary marijuana event. Each one of these plans must comply with the relevant state laws and rules regarding cannabis sales, storage, and security.
It’s very important to make sure your application is complete at the time of filing, otherwise you could risk an expensive denial, and even more expensive delay of your date.
The Cannabis Counsel® Difference
Founded in 1999 as America’s first cannabis only law firm, Cannabis Counsel® is deeply rooted in the Michigan legalization movement. Hosting small events and larger concerts with money and time donated to the cause, the attorneys and industry professionals at Cannabis Counsel® have experience hosting events from dozens to thousands.
Our team of cannabis attorneys, event specialists, and industry experts have so far achieved a 100% state approval rate for temporary marijuana events, and we would be happy to lend you our experience as you plan your licensed cannabis event!
This content was originally published here.