By Jessica Hoehn

Yes, the title of this article is correct. I clearly am assuming it is going to happen because unfortunately the chances are you will be breached in some manner. Think about your personal accounts. How many times have you had to replace your debit/credit card or had some sort of fraud performed in your unauthorized name? And let’s face it, cannabis businesses are quite lucrative and the hackers know this and know cyber protection may have been the last thing on your mind when you opened your doors.

Besides the fact that your company’s information can be stolen and/or compromised, don’t overlook the fact that you are storing proprietary information about your customers on your servers as well. You have a bunch, from shipping addresses, birth dates and credit card information to personal medical records if you are a Medical Marijuana clinic or dispensary.

We are living in a technology-dependent society. I mean, just watch me start looking for a charger when my cell phone is at 30% and there is a good chance of seeing me curse if my desktop or laptop is running slowly because of the Wi-Fi connection. MJ Freeman, a seed-to-sale tracking software company, were hacked in 2016 and then again in 2017, which made some dispensaries have to record sales on paper and some to even close temporarily costing thousands of dollars. What will happen if your network goes down? Can you afford to be shut down or held hostage?

You may have considered that a hacker can give your system a virus, grab your customer data and shut down your system but have you considered all of the costs associated with that?

• They delete all your data – you now have to pay to restore.
• They access your accounts and transfer money clearing out your accounts.
• They install a virus shutting your system down which causes loss of income and additional cost to get back up and running.
• They access your website and change content and pricing
• If you deal with patients records you could suffer large defense costs against HIPAA guidelines if not notified properly.
• If you give access to third parties, their information could be compromised as well.

You need to protect yourself, your customers, suppliers, vendors and the general public just to name a few.

A Cyber Liability insurance policy covers the financial losses resulting from data breaches and other cyber-attacks. It can be tailored to fit your needs covering your company and third-parties if you choose and can be reasonable to obtain and offer a range of deductibles. Most Cyber Liability policies cover damage and theft of your electronic data, loss of income and extra expenses, cover cyber extortion demands, handle notification costs and even public relation cost associated with damage to your company’s reputation. The most important factor is that your coverage is placed with a company who is on top of the ever changing threats that occur daily.

Bottom line is if your system is ever breached, the cost of the policy is going to be insignificant against the cost you will incur to correct the situation. Be proactive and consider purchasing protection before a threat takes place.

Jessica Hoehn, medical malpractice insurance specialist with Danna-Gracey, can be reached at (888) 496-0059 or