The cannabis and hemp industries are rife with inherent risks. Risk mitigation involves discussing those risks and implementing a plan to avoid potential problems associated with them. It is important to align with a law firm that has seen anything and everything that can go wrong in the industry and leverage the firm’s experience to ensure your game plan accounts for all potential issues.
Risk prevention is always the best approach, and having the foresight to predict what could happen can position your business to avoid pitfalls. Only when working with a firm that has prevented disasters and mitigated inherited ones can you put forth your best defense against threats. Working with a firm steeped in the cannabis industry and experienced in cannabis and hemp laws will help inform the strategies you implement for the future and against risks and threats, including bad partnerships, compliance issues, and the inability to adapt to ever-changing laws.
A part of any risk mitigation strategy is having appropriate insurance policies, such as business interruption, product liability, D&O and other important coverages, in place. Proper protection can be the difference between immediately squashing frivolous actions and having to defend yourself in risky litigation. Niche coverage will be necessary for cultivators, manufacturers and retailers, among others.
The right team of counsel and other professionals, such as accountants, can draw upon years of experience to formulate a workable risk mitigation strategy and provide ongoing counsel to navigate any risks that might appear.