Auxiliary Businesses

Video Transcript

Larry Harb:              

 If you’re an auxiliary business—don’t matter what part of this industry you’re in—if you’re an auxiliary business, you need coverage as well. And most of us are an auxiliary business and already have insurance for our normal business on our day-to-day basis, so it’s not a big deal. We’ve already thought about this. This is just another vertical for us. However, what you have to make sure of is—is if you get into this vertical that your traditional insurance companies that are insuring you today don’t cancel you. And we’ve seen that happen.

We see it a lot on landlords and real estate property, where I’m a landlord and my tenant has been the local hardware store, and now the hardware store goes out of business. So, somebody approaches me and says, I wanna put a dispensary in. So, hardware store’s gone. We put a dispensary in that building, but now the insurance company—if the landlord says, we don’t like your tenant. They’re in the cannabis business—we’re not gonna write you. So, now you’ve gotta find a new insurance company to do it. So, just things to keep in mind.