Business Issue

A cannabis processor was growing rapidly and dealing with a rash of small claims due to their growth, new employees, and lack of structured training. When a fire occurred, the entire account came under a spotlight due to a large loss and frequency issues. The recent losses compiled the challenge with the carrier resulting in a non-renewal notice only 60 days prior to renewal. Their current broker came in at the last minute with a premium increase of $868,000 as the only option.

Action Plan

Based on an existing relationship and industry expertise, the OVD team was referred in to help. OVD wasted no time jumping in and engaging with the processor to develop and implement an action plan. Working closely with the client’s leadership team, a strategy was agreed upon to address both the insurance program and the safety/risk plan.

The Plan:

_01 Conduct a root cause analysis on recent fire loss and take corrective action with updated procedures

_02 Audit the current insurance policies and provide recommendations based on specialization of cannabis property and crop insurance

_03 Perform job hazard analysis for all key functions and roll out a training schedule

_04 Implement an online learning management system to coordinate safety and compliance trainings and tailored training based on the strategy developed with the leadership team

_05 Establish a regular claims review process with a dedicated claims specialist from the OVD team while updating and implementing a transitional return to work program.


After a comprehensive audit of the insurance program, OVD was able to use their experience and carrier relationships in the cannabis space to restructure the program, increase coverage, and reduce total spend by 50% – resulting in annual savings of over $400,000. The safety and risk management plan that was implemented will continue to drive down the client’s total cost of risk year over year.

Disclaimer: Individual results will vary.