Disclaimer: To protect confidentiality, company names and insurance carriers are not disclosed in these case studies. The details provided are generalized to illustrate our expertise and results. Have questions? Call us at: 1-833-374-7475

Background

When an operating company faced financial challenges that led to foreclosure and the sale of its assets, a group of investors stepped in to purchase the assets and form a new parent organization. Operating as a cannabis multi-state operator (MSO) with approximately $175M in revenue, 500 employees, and an annual insurance spend of $4M, the new entity needed a strategic insurance solution to navigate the complexities of the transition.

Concerns

• Maintaining uninterrupted insurance coverage during the asset transfer period.
• Adapting insurance to align with changes in exposure due to the new operational structure.

Our Process

1. Data Gathering: Collected an updated organizational chart and established a detailed timeline for the asset transfer process.
2. Carrier Collaboration: Worked closely with insurance carriers to communicate the company’s financial status and provide transparency about the transition plans.
3. Coverage Planning: Designed a detailed plan to ensure continuous insurance coverage throughout the transition period.

Results

• Continuous Coverage: Tail policies were implemented for claims-made coverages, extending reporting windows to avoid any disruptions.
• Customized Endorsements: Manuscript endorsements were created to address unique risks and ensure coverage continuity throughout the transition.
• Cost Savings: Seamlessly transferred insurance coverage with no gaps, achieving six-figure savings in annual insurance costs.

This case study demonstrates how proactive planning and collaboration with carriers can navigate even the most complex transitions, ensuring uninterrupted coverage, reduced costs, and a solid foundation for a new organizational structure.

Facing organizational restructuring? Contact Frontier Risk today for tailored cannabis insurance solutions for your MSO needs.