Pittsburgh, PA – March 14, 2022- Currently, many banks and other financial institutions refuse to work with cannabis-related businesses, often citing cannabis’ current status under federal law. Were it to become federal law, the SAFE Banking Act (he “Act”) would create a “safe harbor for depository institutions,” reducing the risk to them of doing business with the state-legal cannabis industry in the United States. Passage and enactment of the Act would also provide important “protections for insurers,” which, in turn, should also benefit policyholders.
A new primer just published today by Leech Tishman and Symphony Risk Solutions entitled, “The Cannabis Industry & the SAFE Banking Act: Looking to the Future, Planning for the Present,” provides an in-depth analysis of the SAFE Banking Act and its potential effect on cannabis businesses. In this piece, Michael H. Sampson, Cannabis and Insurance Coverage Partner at Leech Tishman, and Richard Golz, Principal at Symphony Risk Solutions, discuss the current status of the SAFE Banking Act as well as how to manage the increased risks and operational challenges the cannabis industry faces unless and until the Act becomes law.
Among the tips offered in the primer:
- A cannabis-related business should review and analyze insurance coverage portfolio.
- A cannabis-related business should purchase insurance, including, but not limited to, property insurance, crime insurance, product-liability insurance, cyber insurance, and employment practices liability insurance
- A cannabis-related business should establish appropriate physical security and security protocols
- A cannabis-related business should do its due diligence and should carefully vet vendors and service provides
“Rich and I are very excited for the release of this primer. Leech Tishman has a great relationship with Symphony Risk Solutions and its principals, and the publication of this document is just one more collaborative endeavor,” stated Sampson. “The lack of access to banking, of course, has been a real problem for businesses throughout the cannabis industry. Rich and I are pleased to offer not just some background and updates on the SAFE Banking Act but also an explanation of how passage and enactment of the Act would benefit policyholders and the cannabis industry. More important, we are pleased to be able to offer some practical, real-world suggestions about how to manage risk unless and until the SAFE Banking Act becomes law. It is so important that policyholders protect themselves, and we are excited to be able to help them mitigate their risk.”
To view the full primer, please click here.
ABOUT LEECH TISHMAN
Leech Tishman Fuscaldo & Lampl is a full-service law firm dedicated to assisting individuals, businesses, and institutions. Leech Tishman offers legal services in business restructuring & insolvency, corporate matters, employment & labor, estates & trusts, intellectual property, litigation & alternative dispute resolution, and real estate. In addition, the firm offers a wide range of legal services to clients in the aviation & aerospace, cannabis, construction, emerging cyber technologies, energy & natural resources, healthcare, and hospitality industries. Headquartered in Pittsburgh, PA, Leech Tishman also has offices in Chicago, Los Angeles, New York, Philadelphia, Sarasota, and Washington, D.C.
ABOUT SYMPHONY RISK SOLUTIONS
Symphony Risk Solutions is the next generation, full-service insurance, risk management, and employee benefits advisory firm targeting the risk and human capital needs of middle market and “lower Fortune 500” businesses, private equity firms and alternative asset managers, and corporate executives and high net worth families. Symphony Grow is the specialty business of Symphony Risk Solutions focused exclusively on the risk management and human capital needs of the legal Cannabis, Hemp, and CBD industries.