December 6, 2019 | less than a minute read

In the face of rising risk, cannabis companies need cyber liability insurance, too

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Mike Sampson

Partner

Get in touch

Mike Sampson

Partner

Credit monitoring company Experian recently highlighted one of the real threats facing the cannabis industry today -- computer hacking and other cyber attacks. The risk is indeed real, and the potential exposure is significant. Therefore, Experian said it is especially important for businesses that are new to the market to invest in anti-malware and to implement cybersecurity training programs for employees. It is also particularly important that those same businesses consider purchasing insurance to protect against cyber liability. A cyber liability policy can provide both first-party and third-party coverage. While, certainly, a cannabis-related business has many other pressing concerns, it should not overlook this risk or the need for cyber liability coverage, which is currently available in the market.

Credit monitoring company Experian says cannabis and cryptocurrency companies will be targets of hackers in the coming year, according to the company's report on data breach trends and predictions. The Data Breach Industry Forecast 2020 report, released Monday, says the burgeoning industries will be targeted for cyberattacks as a result of online activism, or "hacktivism," and because there are many potentially controversial companies in the growing industries. The seventh annual report claims cannabis retailers may not fully invest in protective cybersecurity measures because of other priorities, and that the nature of their business makes them bigger targets than other companies for hackers. Medical marijuana dispensaries may be an even bigger target because of the access they may provide to personal medical records, Experian said.