Understanding Your Risk Pt. 2

Video Transcript

Larry Harb:

What happens if your computer systems crash during the course of a day? You’re a dispensary and now your systems crash, your point of sale system crashes. You can’t get information. You can’t sell. Major problem and this isn’t unique to cannabis. Wal-Mart, right? Because we insure technology, I had a claim off of a Wal-Mart store where their systems crash. They had to close the store down, get everybody out of the store because they couldn’t check out anything. They couldn’t sell anything. Well, the electrician who caused the short that’s crashed the system wasn’t happy when Wal-Mart came back and sued him. We’ve talked about employees being thieves. Trust me, they will be.

Someone sues you because they did something stupid while they were under the influence. Is it gonna happen? Yes. There’s a court case right now in Colorado where the guy supposedly was high and shot his wife. Well, I’m gonna tell you it probably didn’t take him to be high to do that, okay? He probably premeditated that long before he started getting high. But, if people could place blame elsewhere, will they?  Every time. Accepting responsibility is not something people like to do today, so keep that in mind. When they can push it to you, they’ll do it. Someone sues you because they’re bud tender recommended the wrong strain. Major issue, okay? Can it happen? Yes. Should your bud tenders be recommending? No. They should not be. They should not be recommending. And, is it an insurable risk though? The answer is yes. Do most people buy it? The answer is no.

Someone claims that a picture on your website was their intellectual property. Now, most of you’ve probably never thought about that, but actually in our company I had this suit come to me. It was a simple suit. I had somebody who built a website for us—this was over 10 years ago. They built a website, I had a photo on the website. We’ve used it for 10 years. It was never a big deal. Oh, I loaded that up to Facebook. I got a letter about three weeks later from a lawyer in Canada saying that photo is my client’s intellectual property, you need to pay us $30,000 for the use of it. Okay. I called my web guy, the person who did it for me, and said, where did we get this photo from and, of course, they didn’t remember. It was 10 years ago. I said, well, let’s do a little research and, low and behold, it was his photo. Now, the good news was, is we negotiated the fee down. It didn’t cost us $30,000, but we ended up paying them. Okay? Because it was somebody’s intellectual property, and we had infringed on it.

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