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 five companies joined forces and went public, they faced a unique challenge: managing their independent insurance policies under one umbrella. Operating as a cannabis multi-state operator (MSO) with approximately $200M in revenue and 250 employees, the newly consolidated entity was spending $1M annually on insurance across over 50 policies. This fragmented structure not only led to inflated premiums but also complicated cash flow management with varied renewal dates.

Concerns

• Managing over 50 insurance policies across different entities, which resulted in high premiums and redundancies.
• Varied policy renewal dates that disrupted cash flow planning.

Our Process

1. Policy Review: Conducted an in-depth analysis of all existing insurance policies to identify overlaps and gaps in coverage under the new organizational structure.‍
2. Exposure Update: Adjusted exposure data to accurately reflect the current size and scope of the consolidated company.‍
3. Collaboration with Carriers: Partnered with insurance carriers to design a streamlined and comprehensive coverage strategy, with the parent organization serving as the primary insured.

Results

• Policy Reduction: Reduced the number of policies from over 50 to just 7, significantly simplifying administration.
• Cost Savings: Achieved six-figure savings in annual insurance costs by eliminating redundancies and optimizing coverage.
• Cash Flow Management: Consolidated renewal dates into two key periods, providing greater predictability and improved cash flow management.

By strategically aligning their insurance program with their new structure, this organization not only reduced costs but also gained a more efficient and manageable insurance process, enabling them to focus on growth as a unified entity.

Liked what you read? Contact Frontier Risk today for tailored cannabis insurance solutions for your MSO needs.