The business of Cannabis carries with it any number of different risks and there is an imminent need for insurance solutions, coupled with outstanding customer service in the cannabis industry.
Our special guest and his colleagues are on a mission to provide specific risk management solutions that surround the magical plant.
Visiting Planet Pakalolo this week is Matthew Johnson, Vice President of Risk Services at QuadScore Insurance Services.
Matthew and team have the ability to put together unique programs, based on strong underwriting background, elaborate research, and an understanding of all the risks of conducting business in the cannabis industry.
Tune in for this crazy conversation at TalkRadio.nyc or watch the Facebook Livestream by Clicking Here.
Jonny Tsunami starts the show by introducing his guest Matthew Johnson, Vice President of Risk Services at QuadScore Insurance Services. The two talk about marujanas growth in the past couple years and how insurance is important for these new companies. Matthew talks about assets and the necessary steps to keep those assets insured and protected. The two talk about the recent growth in Florida and the rising companies and programs that are provided there. Matthew talks about the different licences that individuals and companies need to legally produce product.
Matthrew explain the two main ways to get insurance and talks about the different ways that they help solve problems for their clients. The two talk about how the communication between cannabis farmers and insurance protectors. Matthew explains that they want to insure these companies and it is being seen that more and more farms, companies and businesses dealing with cannabis are looking to get insured as more laws and regulations are being updated and changed. Jonny asks about any clients that have tried to push boundaries that are set and Matthew shares some stories that he experienced when he was new to the industry. Jonny talks about his own experience dealing with being insured and having a licence and still getting backlash.
Jonny gives Matthews background and work history in the insurance industry and Matthew shares his journey to how he got the job he has now. Matthew talks about the disconnect he has seen and how in a way he has seen the disconnect as a positive as the more experienced organizations are most of the time interested in showing the younger businesses the way. The two talk about how much they have seen this industry grow and they agree that there is so much room to grow because in a way due to this industry being so new it is all uncharted territory.
The two dive deeper into what QuadScore Insurance Services truly offers its clients. Matthew explains what they can cover and the risks you can face and how they are different if you are a marajuana based company. Jonny talks about how the requirements and steps may seem like a lot of hurdles to jump but by getting that insurance it keeps the company safer and better protected. Matthew talks about the operations and security that QuadScore Insurance Services provides to keep their clients safe. He shares that they help with physical security and even with keeping up with equipment to make sure all of the processes are safe and insured.
00:02:51.990 --> 00:02:57.240 Jonny Tsunami: that's the tune of our folks talk radio dot nyc 6pm.
00:02:57.720 --> 00:03:10.710 Jonny Tsunami: i'm your host john tsunami, and this is kind of pop go low low less taboo you and for those of you who don't know taco lolo is hawaiian slang for crazy tobacco, also known as marijuana.
00:03:11.100 --> 00:03:19.650 Jonny Tsunami: But this show is about taking the crazy out of cannabis and removing the taboos by talking to people within the industry that are changing it day by day.
00:03:19.950 --> 00:03:29.040 Jonny Tsunami: One of those people today sitting in as our guest is my main man Matthew Johnson Vice Presidents of risk services Matthew how you doing today brother.
00:03:29.550 --> 00:03:31.200 Matt Johnson: Oh well, Johnny how about yourself.
00:03:31.650 --> 00:03:35.610 Jonny Tsunami: i'm doing pretty good my man, I actually the floorboards in the basement.
00:03:36.840 --> 00:03:44.940 Jonny Tsunami: started seeping water, so I just I found that out recently, but other than that it's okay we're getting through it, because you know what.
00:03:45.300 --> 00:03:56.670 Jonny Tsunami: You got to be like water you got to adapt and that's what it's about in the cannabis industry so you're working with quad score give our listeners just a little bit of a background of what quad score is.
00:03:57.570 --> 00:04:08.640 Matt Johnson: But score is a specialty insurance company covering the needs of America is booming marijuana industry were founded in late 2018 after seeing a huge gap.
00:04:09.330 --> 00:04:17.340 Matt Johnson: In between what cannabis companies needed to be adequately insured and what was available in the marketplace and have have come a really long way and those three years.
00:04:18.090 --> 00:04:24.780 Jonny Tsunami: So, and now, when you think about it or it's a very important thing, and like we like to do is kind of talked about in the beginning.
00:04:25.470 --> 00:04:37.620 Jonny Tsunami: Of the show what's recently going on, so there were some things that we had talked about prior mergers and acquisitions and all these different things so let's talk about truly even harvest merger for a second So what are your thoughts on that.
00:04:38.460 --> 00:04:48.450 Matt Johnson: yeah it's a it's a huge deal it's two titans creating a super titan with a murder, you know truly has been notable for me very strong presence in the state of Florida.
00:04:48.990 --> 00:05:02.910 Matt Johnson: believe in running about a quarter of the States and Spencers and selling about us half of the state's flower, which is a really powerful thing harvest as a more national footprint when the to combine it's going to be a.
00:05:04.560 --> 00:05:06.120 Matt Johnson: super titan in the space.
00:05:07.290 --> 00:05:13.380 Jonny Tsunami: So I mean I feel like for somebody who's dealing in the insurance risk services, how do you look at that kind of situation.
00:05:14.880 --> 00:05:24.390 Matt Johnson: yeah I mean American cannabis is already growing very rapidly organically, and a lot of these companies are going to encounter challenges with that growth.
00:05:25.200 --> 00:05:38.460 Matt Johnson: You know I look at it through the insurance lens of if i'm building a new location and new dispensary the cultivation etc i'm going to need to make sure that that is adequately insurance in case the worst happens after fire so on.
00:05:39.360 --> 00:05:46.980 Matt Johnson: When you add mergers and acquisitions in the next, there are two additional wrinkles at least two additional wrinkles.
00:05:47.850 --> 00:05:59.460 Matt Johnson: That come into the first would be with your directors and officers insurance coverage, where you want to make sure that the people running your companies are protected and in case lawsuits arise.
00:06:00.510 --> 00:06:15.540 Matt Johnson: And then you really want to make sure that you know what the assets you've acquired, are you want to keep a good master schedule of those assets and you want to take all of the necessary and possible steps to protect those assets again from any any possible losses.
00:06:16.500 --> 00:06:31.740 Jonny Tsunami: That we also have Crespo labs the purchase of one plant in Florida so i've been watching Crespo for a while, so it's a it's interesting it was kind of like a little bit of a titan before i'll call that one sleeping giant because it's been a while so what's your thoughts on crisco.
00:06:32.430 --> 00:06:42.330 Matt Johnson: cresskill is huge, I think it's a wise move we're seeing a ton of activity in Florida, people are really recognizing the potential of that state and the limited limited licensure.
00:06:42.960 --> 00:06:53.100 Matt Johnson: in Florida has really allowed certain operators to establish a strong footprint so Chris goes after the acquisition of one plan, also known as bloom aloneness.
00:06:54.120 --> 00:07:03.180 Matt Johnson: gave them a strong foothold in the south east or Florida, is the only state with any kind of recognizable program medical or otherwise.
00:07:04.650 --> 00:07:11.970 Matt Johnson: You know we're also saying, I believe that the cookies looking to expand into the state into which is a northeastern operator with.
00:07:13.290 --> 00:07:15.660 Matt Johnson: Leave messages Massachusetts and Pennsylvania operations.
00:07:17.130 --> 00:07:33.420 Matt Johnson: I think even California group called jungle boys is looking to expand into Florida as well, so a lot of attention on the State cloud scores based not too far away in Atlanta Georgia, so we can only hope that our medical program, which is still very much in its early phases.
00:07:34.530 --> 00:07:38.910 Matt Johnson: Can can reach the same potential that Florida has gotten to in such a short time.
00:07:39.750 --> 00:07:45.540 Jonny Tsunami: It is and it's crazy to see how all of these acquisitions are just happening almost on a weekly.
00:07:46.530 --> 00:08:00.840 Jonny Tsunami: You can see something like this and you mentioned, or maybe this one you didn't mention, but clearly purchases Los ninos that's big I mean they're up above like almost 110 different locations now right I.
00:08:01.200 --> 00:08:12.420 Matt Johnson: Think clearly probably has more than that, at this point, but a little swing deals is certainly a sizable location and add in the mix I believe they're the largest outdoor cultivation operation in the great state of Colorado.
00:08:14.280 --> 00:08:27.120 Matt Johnson: outdoor cultivation for sense unique insurance risks, but overall, a very strong acquisition by clearly because the production capacity blow swain else is one that it's hard to rival in the rocky mountain state.
00:08:28.590 --> 00:08:42.900 Jonny Tsunami: The way that you talk about cannabis I love the way that you talk about it with a spin of having the the insurance to that I think that's what's really important with people I do appreciate when they're looking at it and they're trying to figure out if this is the right move for me.
00:08:44.100 --> 00:08:50.100 Jonny Tsunami: I think that's huge and when you look, and then we had what till re-investment into madman so tell me a little bit about that.
00:08:50.940 --> 00:09:03.870 Matt Johnson: yeah so I believe mad men when they were having some troubles a couple years back, secured something around the neighborhood of 200 million and financing from Scotland Green Group cannabis investment Group and
00:09:05.700 --> 00:09:14.700 Matt Johnson: Until Ray had a really interesting strategy where they hadn't played much in the United States, despite being one of the world's largest cannabis companies internationally.
00:09:15.750 --> 00:09:26.070 Matt Johnson: The RAF now I heard behind that strategy was that they wanted to wait for federal legalization to come about, and its entirety before today tried to establish a footprint so.
00:09:26.940 --> 00:09:36.510 Matt Johnson: You know the worry would be that you'd establish a foothold in one state grow your operations there and then, when it comes federally legal that state is just useless.
00:09:37.170 --> 00:09:56.490 Matt Johnson: for whatever reason, so Hillary obviously saw some value in MED men's brand and the footprint wanted to take advantage of that opportunity and kind of shift their more reserved strategy after realizing again America is really quickly becoming the world's capital for cannabis.
00:09:57.330 --> 00:10:03.420 Jonny Tsunami: And these mentioned cookies and jungle boys So those are like two pretty big staple brands.
00:10:04.290 --> 00:10:22.830 Jonny Tsunami: Mountain West Coast California and what they do is they actually sell their genetics, in a way, is part of it, and then the other part, is the way that they actually cultivating raised the plan, but it's interesting to see that it's all almost stemming from that Mecca of the country.
00:10:24.420 --> 00:10:28.350 Matt Johnson: Absolutely and that's kind of the view that I think till Ray had right.
00:10:29.340 --> 00:10:43.440 Matt Johnson: You know Oklahoma has been pretty relaxed with their medical licensing process, and there are now thousands of licenses that have been given out for cultivators and retail dispensary for like or I should say medical dispensaries.
00:10:45.540 --> 00:10:55.530 Matt Johnson: Those are are great as long as you're limited to the scope of Oklahoma but consider a world where federal legalization does occur in the next few years.
00:10:57.210 --> 00:11:04.020 Matt Johnson: You can walk in any pharmacy or liquor store whatever it looks like when you're buying it in a normalized market.
00:11:05.850 --> 00:11:20.040 Matt Johnson: You don't anticipate a lot of customers choosing even Oklahoma indoor cannabis over California sun grown right it's just hard to beat the recognition that California has had.
00:11:21.240 --> 00:11:21.660 Matt Johnson: Over.
00:11:22.800 --> 00:11:30.900 Matt Johnson: Arguably, they do have the best climb in the country to grow cannabis and we see that in the traditional and illegal market alone now.
00:11:31.650 --> 00:11:41.490 Jonny Tsunami: To go more local to where you are in Atlanta so what's kind of going on there you're in the medical program but a little bit deeper into what's going on in your state.
00:11:42.510 --> 00:11:52.650 Matt Johnson: Absolutely we're really excited about this, Georgia has had medical cannabis laws on the books, since pointed me in and we actually passed a second on.
00:11:54.600 --> 00:11:57.510 Matt Johnson: However, the Georgia access to medical cannabis Commission.
00:11:58.920 --> 00:12:08.970 Matt Johnson: was a bit delayed in actually awarding cultivation licenses to anyone, we saw the first batch of those licenses go out just two months ago into live.
00:12:10.110 --> 00:12:28.980 Matt Johnson: Six cultivation licenses three of the companies that won the award are out of state operators and three are Georgia businesses from what I can tell, I will either be allowed to build a 100,000 square foot cultivation facility or 50,000 square foot cultivation facility along.
00:12:30.570 --> 00:12:33.600 Matt Johnson: Leave five retail dispensary location.
00:12:35.700 --> 00:12:46.110 Matt Johnson: it's a very strict program for now, where the only products that will be available to medical patients are low potency thc oils capped at 5% thc.
00:12:47.280 --> 00:12:51.450 Matt Johnson: And it's a very stringent list of qualifying factors.
00:12:53.250 --> 00:13:07.590 Matt Johnson: You you really don't have any of the conditions that make you eligible get a medical marijuana card here yet so hoping that they are able to see the benefits from the plan and less than those restrictions in years moving forward.
00:13:08.010 --> 00:13:08.970 Set 5%.
00:13:10.050 --> 00:13:10.590 Matt Johnson: doctor said.
00:13:10.980 --> 00:13:12.630 Jonny Tsunami: Oh, my God i'm I would take.
00:13:14.550 --> 00:13:15.570 Jonny Tsunami: It would take all day.
00:13:16.020 --> 00:13:17.280 Matt Johnson: You have to buy a whole list.
00:13:18.840 --> 00:13:19.380 Jonny Tsunami: Though.
00:13:20.580 --> 00:13:37.020 Jonny Tsunami: And so now, maybe that's okay on the business level, but then I think what's also equally important is on a population and how the people themselves feel about so generally, how do the people of Atlanta kind of feel about cannabis is there a huge divide is it you know, a battle.
00:13:38.130 --> 00:13:42.780 Matt Johnson: Oh i'm glad you asked that turned into my favorite conversation smarter.
00:13:43.860 --> 00:13:53.850 Matt Johnson: boundaries down with a group of friends and meet some new people it's a good way to get people talking, you know we saw Georgia flip to be a blue state, for the first time.
00:13:55.170 --> 00:13:59.970 Matt Johnson: This past election cycle and you do see a market shift and.
00:14:01.980 --> 00:14:14.730 Matt Johnson: I won't get into politics but and people stances on cannabis when you're inside of a big city like Atlanta or some more urban areas like admins or savannah Georgia versus when you're a little bit more out of the country.
00:14:16.440 --> 00:14:23.550 Matt Johnson: I believe the States population is somewhere around 8 million people and get over half of those living in metropolitan Atlanta.
00:14:23.940 --> 00:14:38.790 Matt Johnson: Atlanta is taking steps to decriminalizing and generally, I think that people here in a favorable outlook on cannabis and I know, several are jealous of what Florida and other states have going on, so very optimistic to see it grow.
00:14:39.270 --> 00:14:48.840 Jonny Tsunami: that's what that's what it takes it's just the snowball effect domino effect, whatever you want to call it it's happening and we're making that happen guys like you will make so we're going to take a little break.
00:14:49.350 --> 00:15:03.390 Jonny Tsunami: When we come back we'll talk to matt Johnson here and lovely conversation quad core risk services, out of Atlanta Georgia and i'm Johnny tsunami, this is planet bucko low low talk radio dot nyc be back right after these messages.
00:17:15.570 --> 00:17:28.530 Jonny Tsunami: A everybody it's Johnny tsunami, and this is blended pocket lolo i'm out here talking with Matthew Johnson quad score insurance services Vice President of risk services Matthew Johnson tell me my man, how you doing today.
00:17:29.220 --> 00:17:30.930 Matt Johnson: doing well happy to be here.
00:17:31.440 --> 00:17:38.910 Jonny Tsunami: awesome so we got into a little bit of mergers and acquisitions some current events that was happening with the different corporations that are.
00:17:39.330 --> 00:17:47.880 Jonny Tsunami: making their way very quickly across the nation, so, but we also finished it off a little bit of talking about what's going on in Atlanta Georgia.
00:17:48.480 --> 00:18:01.890 Jonny Tsunami: But now, what I want to talk about is more of the ins and outs of risk services your business and how you work with cannabis clients so let's start there, how do you approach your clients in Atlanta.
00:18:03.420 --> 00:18:03.720 Matt Johnson: well.
00:18:04.740 --> 00:18:07.860 Matt Johnson: Fortunately we don't have too many clients in Atlanta, though.
00:18:09.000 --> 00:18:10.050 Jonny Tsunami: You know I well, I mean.
00:18:10.080 --> 00:18:13.620 Jonny Tsunami: If you're saying i'm putting it this way, you have clients that you deal with.
00:18:15.540 --> 00:18:27.210 Jonny Tsunami: Eventually they're going to be clients in Atlanta as well it's still a burgeoning market it's still a baby in many ways, but we don't even have to go to Atlanta necessarily but all the clients that you're working in general what's it common approach that you take them.
00:18:27.450 --> 00:18:29.670 Matt Johnson: All your your right and we actually have started working with.
00:18:30.690 --> 00:18:34.830 Matt Johnson: At least one, I think, to have the order licensees now yeah so it's a.
00:18:35.250 --> 00:18:41.550 Jonny Tsunami: About a man that's pretty good percentage if there's only six in the state and you've got to you've got a pretty high percent so.
00:18:42.390 --> 00:18:45.270 Matt Johnson: All we're hoping to the rest of y'all are listening give me a call.
00:18:46.380 --> 00:18:49.890 Jonny Tsunami: we'll get it out there, so show me the magic tell me a little bit about this biz.
00:18:50.340 --> 00:19:07.290 Matt Johnson: yeah, so there are really two main ways that you'd like to buy insurance right the first is a direct model, you know I personal auto insurance is a great example I just bought a car, I need to get insurance i'll go to a website get a call from geico or farmers or whoever.
00:19:08.580 --> 00:19:22.800 Matt Johnson: The second one is what we call the retail model where you go to your local insurance brokerage you stop in and you say hey I need your help, covering my restaurant my pharmacy or in our case, my cannabis business.
00:19:24.540 --> 00:19:34.260 Matt Johnson: So our process is a little more nuanced because we need to work with the insurance experts who understand that rick has worked at the various select network.
00:19:34.590 --> 00:19:42.030 Matt Johnson: of cannabis insurance brokers around the country who specialize in this field, so that we can have the best access.
00:19:42.810 --> 00:19:51.360 Matt Johnson: To the cannabis companies and be able to provide them with the best possible policies because we're getting again, you know the best possible information from their insurance brokers.
00:19:52.110 --> 00:20:01.140 Matt Johnson: So we'd like to do that with a lot of travel, we really like to be on a plane visiting the the movers and shakers in the industry and it's a small world out there.
00:20:02.910 --> 00:20:16.560 Matt Johnson: But building that relationship face to face getting to understand the problems that these companies are encountering and just coming up with creative ways to solve those problems and mitigate the risk that that enterprise basis so.
00:20:16.620 --> 00:20:22.830 Jonny Tsunami: Maybe give me one of those creative ways, something that you've come across in the past, you know, give us an example.
00:20:23.310 --> 00:20:25.230 Matt Johnson: yeah so I mean my favorite.
00:20:26.100 --> 00:20:29.220 Matt Johnson: Group and basis the national cannabis industry association.
00:20:30.060 --> 00:20:37.650 Matt Johnson: I guess was elected, beyond the risk management and insurance company for a second term very excited to continue my work with those guys.
00:20:38.760 --> 00:20:46.920 Matt Johnson: They have such a great footprint of Member businesses and organizations, they have some really great events.
00:20:48.300 --> 00:20:57.030 Matt Johnson: For example, if you're doing a big conference in San Francisco I think December 15 through 17 this year which will be really exciting but.
00:20:57.540 --> 00:21:06.660 Matt Johnson: In pre call the doctor, they just host industry mixers so I might be on a work trip and get an email saying oh hey ncaa is doing a an event at.
00:21:07.230 --> 00:21:16.920 Matt Johnson: This location again baltimore where it is, if you could not by no no offense to the people in my industry and i'm sure they feel the same way, but.
00:21:17.370 --> 00:21:27.300 Matt Johnson: You know, being an insurance guy being able to talk to you know, a guy like you who's actually run a cannabis farm that's so cool we're meeting with people that we want to protect.
00:21:28.470 --> 00:21:33.990 Matt Johnson: In anything we can do to better understand the business and the risk that you face helps us do our job better.
00:21:34.740 --> 00:21:44.700 Jonny Tsunami: So, last week I interviewed lonnie talbert loan area was a puppy he is he's a CEO of Southwest capital Community bank out in albuquerque new Mexico.
00:21:45.120 --> 00:21:50.430 Jonny Tsunami: started with one client in 2014 he's got over 120 24 right doing a great job.
00:21:50.880 --> 00:21:58.320 Jonny Tsunami: is one of the biggest things that he told me was is that it's about honesty integrity and transparency in the bank if i'm going to be a banker.
00:21:58.710 --> 00:22:10.350 Jonny Tsunami: Or am I going to trust you unless you tell me where your money is coming from, and you, you open the doors to me if you don't you're you're putting me at risk and you in is that similar let's say in the insurance industry.
00:22:11.340 --> 00:22:12.090 Absolutely.
00:22:13.980 --> 00:22:16.410 Matt Johnson: yeah you get nowhere by.
00:22:17.490 --> 00:22:18.720 Matt Johnson: lying to people right.
00:22:19.890 --> 00:22:29.190 Matt Johnson: that's mostly how my parents raised me but it's something that I try to stick to in my communications with the brokers that we work with my co workers.
00:22:29.790 --> 00:22:38.130 Matt Johnson: With the partners who on the firm and if you can't be honest and the word means nothing and insurance itself is.
00:22:38.730 --> 00:22:53.610 Matt Johnson: I mean that's just us giving you our word that you know if your fire burns up or someone steals from your dispensary you have our word that we're going to make you whole again so if your word means nothing then your insurance policies mean nothing behind this well.
00:22:53.850 --> 00:23:01.740 Jonny Tsunami: I guess the other question I have is is you ever have a moment where you've come across a client who you feel like was kind of dancing on that line.
00:23:03.840 --> 00:23:06.510 Jonny Tsunami: i'll leave the question that sounds like i've already hit a nerve so.
00:23:07.110 --> 00:23:12.900 Matt Johnson: No yeah I mean yeah you see all manner of things I think my favorite incident that affect you know.
00:23:14.520 --> 00:23:23.760 Matt Johnson: Without sharing any names or anything you know mta VID con out in Las Vegas is typically one of the bigger industry conferences every year and.
00:23:24.210 --> 00:23:31.230 Matt Johnson: I remember coming into the space just bright eyed and bushy tail back in 2019 and two months on the job, the first.
00:23:31.620 --> 00:23:36.480 Matt Johnson: conference I ever go through in my insurance career is the marijuana business conference I nearly lost my mind.
00:23:37.170 --> 00:23:43.110 Matt Johnson: To cool but we ended up going out to dinner with a large California cultivator in their insurance broker.
00:23:43.620 --> 00:23:48.630 Matt Johnson: And had just a great time great conversation learn all about the ins and outs that they were dealing with.
00:23:49.140 --> 00:24:05.340 Matt Johnson: And I remember, I think this was December 2019 I remember sitting at my desk two months later, in February reading an article about how the local sheriff's department had seized something like $6 million worth of cannabis oil from that operators facility.
00:24:06.450 --> 00:24:15.270 Matt Johnson: And I freaked out for a minute oh my gosh is this guy just been doing stuff on the table the whole time why why even go to the trouble of getting licensed so on and so forth, but.
00:24:16.470 --> 00:24:17.820 Matt Johnson: They were able to.
00:24:18.840 --> 00:24:28.200 Matt Johnson: Be patient and waiting and ultimately actually had a really interesting case where the local police department had to give all of the you know see his product back to the cannabis business.
00:24:29.160 --> 00:24:36.570 Matt Johnson: The local church did not know that they had a wholesale distribution license out there and we're doing wholesale.
00:24:37.650 --> 00:24:40.080 Matt Johnson: Cannabis oil and distribution something.
00:24:41.430 --> 00:24:44.610 Matt Johnson: Really really cool story to have the COPs give you back your week.
00:24:45.810 --> 00:24:48.360 Matt Johnson: After kind of thinking it was going to be a big hullabaloo.
00:24:49.170 --> 00:24:55.950 Jonny Tsunami: And we had that situation on the farm somebody had left the front gate open and the.
00:24:56.550 --> 00:25:00.720 Jonny Tsunami: Chief compliance officer for the state just rolled right up and all of our plants were out and.
00:25:01.980 --> 00:25:07.740 Jonny Tsunami: Our neighbor who was an ex police officer, you know 40 acres down the road like there was in the middle of nowhere.
00:25:08.880 --> 00:25:14.460 Jonny Tsunami: When we first moved any peeked in on our property and was like these guys are growing lead in the middle of the woods and.
00:25:15.810 --> 00:25:26.130 Jonny Tsunami: we're, but we also were doing it with a license we had all the licenses in place and everything like that, and it worked out fine and we got through our compliance, but it was kind of like a nerve wracking experience when all of a sudden, like you know.
00:25:26.820 --> 00:25:28.020 Jonny Tsunami: They knock on your door and they're like.
00:25:29.730 --> 00:25:32.910 Jonny Tsunami: We have we have everything so when you have.
00:25:33.660 --> 00:25:46.260 Jonny Tsunami: somebody who what what's the situation that happens if a cannabis business can you know they get the insurance and then you find out, they do something like that, and they are and they're pushing it underneath the table, what happens to the insurance company in that situation.
00:25:46.890 --> 00:25:48.900 Matt Johnson: yeah so there's an interesting.
00:25:50.070 --> 00:25:57.780 Matt Johnson: Other few ways I could take this one, I think the most interesting example would be with a another California group called cushy Pamuk.
00:25:59.340 --> 00:26:01.860 Matt Johnson: They they had two instances that were really problematic.
00:26:03.150 --> 00:26:07.410 Matt Johnson: The first is just an absolute tragedy occurred back in 2018.
00:26:09.090 --> 00:26:21.150 Matt Johnson: A young flight attendant I think a young lady was just 28 years old ingested a cushy punch you know dummy edible and passed away within 48 hours after suffering.
00:26:22.290 --> 00:26:27.300 Matt Johnson: All manner of physiological symptoms psychosis increased heartbeat paranoia etc.
00:26:28.650 --> 00:26:36.600 Matt Johnson: And we're we're still waiting for a lot of the details to emerge surrounding that but we suspect that a lack of product testing.
00:26:37.680 --> 00:26:55.320 Matt Johnson: Annual rigor and adhering to good manufacturing practices, probably contributed to that, but the second issue, they had, I think, even before that, even though they have licenses, for you know I think a few different types of licenses you know cultivation and extraction and so on.
00:26:56.340 --> 00:27:06.570 Matt Johnson: It was discovered by the bcc that they also had an unlicensed cultivation operation as well, so they ended up getting hit with some pretty pretty heavy fines.
00:27:06.990 --> 00:27:15.840 Matt Johnson: When you look at it from a contractual standpoint, one of the key tenants a contract laws that the contract has to be for a legal purpose, so if.
00:27:17.190 --> 00:27:20.520 Matt Johnson: Someone is doing something illegal.
00:27:23.070 --> 00:27:30.300 Matt Johnson: You know I can't make an insurance contract that's going to cover you in case you get hurt well robbing a bank right that's for an illegal purpose so.
00:27:31.290 --> 00:27:36.990 Matt Johnson: there's a lot of concern around that, considering that cannabis is still federally illegal within the United States, but you.
00:27:37.350 --> 00:27:52.380 Matt Johnson: never denied a claim for that reason, certainly don't plan to don't think anyone in the space with last very long, if you did that, as long as you're hearing to the regulations of your state's specific cannabis program and we're here to help.
00:27:53.160 --> 00:28:02.160 Jonny Tsunami: Is there is there been a have you seen a fundamental change in the insurance options and things of that nature as.
00:28:03.630 --> 00:28:05.640 Jonny Tsunami: programs progress and things of that nature.
00:28:06.750 --> 00:28:15.570 Matt Johnson: yeah fortunately it's all moving in the right direction, you know we really entered the space and there was just an utter lack of what we call a capacity, you know.
00:28:15.990 --> 00:28:22.980 Matt Johnson: Say i'm a cannabis company, I put 100 million dollars into just a state of the art massive facility and don't cultivation extraction all that.
00:28:23.280 --> 00:28:27.870 Matt Johnson: Well, I go to buy insurance and they can only cover the first $10 million worth of my building.
00:28:28.650 --> 00:28:37.650 Matt Johnson: So heaven forbid something explodes the whole place burns down I might get a check for $10 million, but the other 98 but in the facility is just gone so.
00:28:38.430 --> 00:28:41.880 Matt Johnson: we've been able to increase that you know quad score on our own now has.
00:28:42.240 --> 00:28:49.890 Matt Johnson: $40 million of in house property capacity we're able to work with some of the other players in the space to build up even more than that, when we need to.
00:28:50.160 --> 00:29:05.700 Matt Johnson: And you know we've looked at a single location facilities in excess of $250 million of total insurable value, so there is a huge investment in this space huge organic growth and huge fan of stimulated growth from those investors so.
00:29:06.420 --> 00:29:16.290 Matt Johnson: Making sure that you protect those assets and having insurance companies that are actually large enough to protect those assets has been key and we're making a lot of good progress.
00:29:16.710 --> 00:29:18.090 Jonny Tsunami: How long squads for been around.
00:29:19.080 --> 00:29:22.110 Matt Johnson: We were launched in December of 2018.
00:29:24.300 --> 00:29:37.320 Matt Johnson: The company probably spent the first six months of familiarizing generally with the marketplace, the kinds of coverage forms that were used can covered forums that needed to be used for really uncovered perils.
00:29:38.370 --> 00:29:48.180 Matt Johnson: and getting a feel for before starting to expand our distribution later in 2019 when I joined and it's just been a rocket ship grown since then.
00:29:48.780 --> 00:29:57.030 Jonny Tsunami: i'm very happy to see that they got a guy like you on board and it's perfect timing, because it's always amazing to be able to work with a company from the adventure.
00:29:57.330 --> 00:30:04.650 Jonny Tsunami: And really be part of the monumental movement as it grows and progressive deeper and deeper within the industry so we're going to take a little bit of break.
00:30:04.950 --> 00:30:17.880 Jonny Tsunami: When we come back we'll be interviewing my man Matthew Johnson, he is the Vice President of quad score and we're going to take a little break i'm Johnny tsunami, this is planet taco low low and we're on talk radio dot nyc we'll be right back.
00:32:52.980 --> 00:33:05.820 Jonny Tsunami: Hello everybody it's your main man Johnny tsunami here on planet pocket low low and less taboo view with my friend here Matthew Johnson Vice President of quality score risk services Matthew how's it going brother.
00:33:06.510 --> 00:33:08.850 Matt Johnson: still doing well die oh good in your neck of the woods.
00:33:09.360 --> 00:33:14.520 Jonny Tsunami: Yet doing good like I said, we had a lot of rain here in Jersey, in the last few days.
00:33:16.140 --> 00:33:16.590 Jonny Tsunami: and
00:33:17.610 --> 00:33:25.110 Jonny Tsunami: I was going on with this mortar floorboards here it's freaking me out i'll get through it, though, why because i've got insurance.
00:33:26.490 --> 00:33:33.960 Matt Johnson: i've been trying not to talk about that this whole time but really should check your sewer backup and yeah we can get into that after.
00:33:34.170 --> 00:33:44.820 Jonny Tsunami: yeah so let's get into what you do a little bit, and I want to get into more personal side of it, you know you went from Berkshire hathaway homestay companies for over two years.
00:33:45.390 --> 00:34:01.920 Jonny Tsunami: Risk Management and insurance committee member of national cannabis industry association now going over a year for the last two years working over a quad score, so what needs, you want to get into the cannabis space as the insurance world goes.
00:34:04.050 --> 00:34:09.930 Matt Johnson: Well, I mean the easy answer is that it was just a heck of a lot more interesting than what I had been doing.
00:34:10.470 --> 00:34:21.000 Matt Johnson: Where I was just doing kind of standard commercial automotive and property insurance really loved my time at Berkshire hathaway a great team learned so much about the space there but.
00:34:21.840 --> 00:34:31.410 Matt Johnson: After two years of traveling in the same small towns in the southeast and talking to people about commercial automotive insurance for big rig trucks and.
00:34:32.070 --> 00:34:41.070 Matt Johnson: Property insurance for their their rental dwellings uh yeah i'm starting to put myself to sleep just describing my old job right, so I had a recruiter approached me with an opportunity.
00:34:41.670 --> 00:34:57.690 Matt Johnson: Actually, to do cyber insurance, and that was interesting enough that I talked to them, and after talking to them decided probably not for me and right at the end of that phone call is it well there's also there's new cannabis insurance company Lon go back to that.
00:34:58.710 --> 00:35:07.050 Matt Johnson: interviewed with the partners really loved it and immediately know I had to jump ship so very glad that I did yeah it's been.
00:35:08.310 --> 00:35:10.590 Matt Johnson: I guess two years this month with comscore.
00:35:11.910 --> 00:35:23.700 Matt Johnson: Absolutely love the team that we built here in Atlanta and get some offices out in park city and San Diego as well we're doing some very cool things and insurance which it's not a sentence, a lot of people get to say very often.
00:35:24.330 --> 00:35:40.080 Jonny Tsunami: So when you go from talking to guys that are truckers and people, you know dealing with that which obviously backbone of the country and people that are involved in that, but now you move in your shift into this and that's a whole new conversation so.
00:35:41.100 --> 00:35:49.320 Jonny Tsunami: How did you adjust that kind of how'd you make an adjustment going from one to the other was it easy or whether things that you had to kind of like work through.
00:35:50.100 --> 00:35:58.320 Matt Johnson: it's challenging yeah but it's the best channel they've ever had in my life you're in a new space right, where every state those things differently.
00:35:59.370 --> 00:36:07.680 Matt Johnson: Someone in New Jersey might have only been in the cannabis industry for a month right but you've got someone in California, who may have been gone for 50 years and the.
00:36:09.150 --> 00:36:15.150 Matt Johnson: The just disconnect between different people's level of experiences led to everyone, just being very open and networking.
00:36:15.480 --> 00:36:19.950 Matt Johnson: If you're an old guy you want to help the young buck figure it out and if you're a young buck you're eager to learn.
00:36:20.490 --> 00:36:32.370 Matt Johnson: From the experts, so I love the network that I have built in the space everyone's been very opening and welcoming and full of information if you're willing to have that conversation and talk to them so.
00:36:34.260 --> 00:36:40.080 Matt Johnson: You know, being involved with organizations like the ncaa or the cannabis law, accounting and business.
00:36:40.680 --> 00:36:52.050 Matt Johnson: group or or you know marijuana business with the mta discount every year it's just been a tremendous opportunity to network and need the brightest minds in america's fastest growing industry.
00:36:52.710 --> 00:36:59.640 Jonny Tsunami: So you get you know you get the new job you go home tell people hey i'm working for cannabis insurance How do people react to that.
00:37:00.720 --> 00:37:21.930 Matt Johnson: yeah great question, I am proud to say, I have a very supportive family, so they were with me all day, but it was a little tough to get my to very southern very conservative grandmother's over the hump initially going to be a life insurance, but you know again they've been wonderful and.
00:37:22.980 --> 00:37:27.510 Matt Johnson: Everyone is seeing how much happier, I am in this position in this industry.
00:37:28.590 --> 00:37:43.860 Matt Johnson: doing something that I believe in and something that I think matters to the cannabis industry, so you know occasionally you'll you'll hear the same thing boy sure, and people are well within their rights, not to like canvas that that's fine that's your choice.
00:37:46.410 --> 00:37:51.690 Matt Johnson: But it really hasn't been an issue at all just again it's such a welcoming community.
00:37:52.530 --> 00:38:01.170 Jonny Tsunami: And there's so much room for growth so yeah because when you're thinking about what you were doing in the past, I maybe what got you a little.
00:38:03.450 --> 00:38:12.420 Jonny Tsunami: apprehensive or bored or whatever you want to call it was the fact you were recognizing and seeing the writing on the wall that there was going to be we're going to hit a ceiling.
00:38:13.110 --> 00:38:25.680 Jonny Tsunami: Because there was already been established for all these years, whereas like I don't know there's a whole new uncharted territory for where you can go into this, as far as and even maybe creating something of your own in the process.
00:38:26.670 --> 00:38:27.600 Matt Johnson: And I mean.
00:38:29.220 --> 00:38:41.640 Matt Johnson: I loved being able to learn from a big company like Berkshire hathaway that has so many successful insurance businesses in I really did learn a ton while I was there, but some things are just so frustrating me.
00:38:43.050 --> 00:38:49.020 Matt Johnson: You know commercial automotive insurance has been one of the least profitable lines of insurance for over a decade now.
00:38:49.710 --> 00:38:58.620 Matt Johnson: running over 100% combined ratio, which means for every hundred dollars of premium that comes in the insurance company is paying out somewhere over $100.
00:38:59.160 --> 00:39:10.740 Matt Johnson: to settle losses loss adjustment expenses a you know payroll overhead etc it's just been unprofitable, or virtually everyone and.
00:39:11.730 --> 00:39:21.540 Matt Johnson: That I couldn't get anyone at that company to listen to me when I wanted to implement active risk mitigation give a discount to someone if they've got a dash cam right.
00:39:22.440 --> 00:39:30.630 Matt Johnson: You know, have rebates get a driver safety training program there's so many things you can do to just make yourself safer on the road.
00:39:31.350 --> 00:39:42.030 Matt Johnson: But the company wanted nothing to do with incentivizing their clients to be safer, so they ended up just having worse and worse losses ended up only being able to ensure the least attractive.
00:39:42.660 --> 00:39:59.610 Matt Johnson: truckers because other companies would you know come in and reward them for saying so, you know that's been really one of the core tenets of how we build cloud score with proactive risk mitigation built in from day one, so we will never enter a fleet that doesn't have a telematics.
00:40:00.660 --> 00:40:04.260 Matt Johnson: You need that the technology and you need to be safe it's 2021.
00:40:05.430 --> 00:40:16.560 Jonny Tsunami: And and speaking of point 21 right technology technological revolution, I always tell people used to be the Industrial Revolution and the 1900s of your vanderbilt's and your.
00:40:16.950 --> 00:40:23.130 Jonny Tsunami: Rockefellers and your carnegie's and now it's your gates in your visa oh send your musk and that.
00:40:24.090 --> 00:40:34.650 Jonny Tsunami: The faces have changed but it's just you know similar in the sense that now technology has changed, and when we look at people live doesn't shock me that car insurance has been losing.
00:40:35.040 --> 00:40:39.900 Jonny Tsunami: With the advent of cell phones and everything like this i'm sure more and more people get into car accidents every day.
00:40:40.260 --> 00:40:48.060 Jonny Tsunami: That it's affecting the insurance in the sheet for for people that we're dealing that kind of insurance now, you will look at it with cannabis.
00:40:48.420 --> 00:40:59.850 Jonny Tsunami: How do you guys or who's on the team, how do we come up with the right calculations when i'm really trying to help someone risk mitigation with cannabis on the cannabis business.
00:41:00.330 --> 00:41:19.260 Matt Johnson: So it's a fun challenge so there's no data in cannabis insurance, other than what you know we've collected over the past couple of years, you can go in and buy you know historical lost data for commercial properties, but a lot of the you know figuring out how to price.
00:41:20.370 --> 00:41:26.580 Matt Johnson: Buildings or how to price and automotive you just kind of have to figure out on the fly and hope it ends up being profitable down the road.
00:41:27.690 --> 00:41:33.630 Matt Johnson: But instead of just hoping why don't you go ahead and implement proactive risk mitigation like again.
00:41:34.800 --> 00:41:40.230 Matt Johnson: It you know for dash cams we've zucca and it's the smartest camera i've ever seen.
00:41:40.440 --> 00:41:52.950 Matt Johnson: will be bet you as you're smoking or eating or texting on the road and give you instant feedback and keep your eyes on the road, keeping safer, I feel a lot better about insurance on this guy that and their card when someone does it so.
00:41:53.430 --> 00:41:57.510 Matt Johnson: yeah we love the risk mitigation and are always looking for new ways to keep our clients.
00:41:58.170 --> 00:42:05.850 Jonny Tsunami: And i'm i'm wondering too it's the same thing cannabis people you know why they have to make sure i've got the right.
00:42:06.540 --> 00:42:16.410 Jonny Tsunami: Fire Protection program, however, if i'm growing and doing all these different things, or the right security and all of the different components that you would need to protect.
00:42:16.830 --> 00:42:32.100 Jonny Tsunami: Your stock, so to speak, so that's to me something that is very, very intriguing and this is why more and more people are coming into the industry because there's so many other ways for people to capture that market share.
00:42:33.210 --> 00:42:41.340 Jonny Tsunami: And it's not in a way, where you're trying to push other people out of the situation it's more of that you're trying to put people in a.
00:42:41.760 --> 00:42:53.880 Jonny Tsunami: more successful position and in the cannabis world those opportunities weren't there, so it might be scary to talk about insurance to cannabis person, but at the same time.
00:42:55.980 --> 00:43:04.590 Jonny Tsunami: it's now open enough where they're running real businesses, and they need that they need that to protect themselves, you know what I mean.
00:43:05.280 --> 00:43:15.480 Matt Johnson: yeah it's all about normalizing an industry, you know it's just you use a perfect word for taboo, nobody wanted to talk about it but.
00:43:16.620 --> 00:43:25.530 Matt Johnson: When the cannabis industry got too big to ignore you started to see people give it the attention it deserves so we're here to do that, however, we can.
00:43:26.970 --> 00:43:30.810 Matt Johnson: And yes, insurance is how we can right so.
00:43:32.340 --> 00:43:41.310 Matt Johnson: yeah hoping to protect an industry that has plenty of problems to deal with on its own from banking to regulatory compliance to accounting.
00:43:44.070 --> 00:43:44.880 Matt Johnson: But whatever.
00:43:47.580 --> 00:43:50.880 Matt Johnson: entity yellow Steve girls animals like.
00:43:51.390 --> 00:43:52.560 Jonny Tsunami: Oh tell them I said what's up.
00:43:54.360 --> 00:43:54.870 Matt Johnson: john he says.
00:43:57.900 --> 00:44:01.500 Jonny Tsunami: Well now, and quad scar what do they have coming down the back.
00:44:03.060 --> 00:44:03.510 Matt Johnson: Oh.
00:44:06.090 --> 00:44:07.050 Matt Johnson: i'm sorry, one more time.
00:44:07.230 --> 00:44:09.210 Jonny Tsunami: what's coming down the chain for quad scar.
00:44:09.660 --> 00:44:18.750 Matt Johnson: Oh just continued growth, you know again in building out a team and building out our suite of products on 2020 will watch the commercial automotive insurance product.
00:44:19.290 --> 00:44:32.490 Matt Johnson: 2021 we launched our directors and officers liability product, we hope to continue to round out the full suite of insurance products and pair it with a complimentary risk management portfolio to help keep these businesses safe.
00:44:33.840 --> 00:44:40.920 Matt Johnson: Ideally, keep them from ever having to file a claim that we pay out just by implementing those risk mitigation matter measures from the get go.
00:44:42.510 --> 00:44:43.860 Jonny Tsunami: So your eyes go off there.
00:44:46.560 --> 00:44:54.570 Jonny Tsunami: This is a, this is the zoom world man, this is where we moved, you know and it's all part of the revolution we're making adjustments so anyway.
00:44:55.110 --> 00:44:59.460 Jonny Tsunami: we're going to take a little break we come back we'll finish off the show our last segment.
00:45:00.150 --> 00:45:12.810 Jonny Tsunami: messaging opportunity to the audience my man Matthew Johnson here required score we're going to take a little break on Johnny tsunami this planet taco low low on talk radio dot nyc we'll be right back.
00:47:13.830 --> 00:47:22.830 Jonny Tsunami: Everybody we are back it's Johnny tsunami, this is planet bako lolo and I am here with Matthew Johnson Vice President of quads for matt.
00:47:23.070 --> 00:47:38.130 Jonny Tsunami: we're getting to the end brother, I really do appreciate that you came on the show so let's talk a little bit about quad score in general, and why it would be a good idea for cannabis professionals to consider your services.
00:47:39.270 --> 00:47:43.620 Matt Johnson: yeah you need to cover your grass it's as simple as that.
00:47:44.790 --> 00:47:46.830 Matt Johnson: You own any business out there.
00:47:48.270 --> 00:47:59.190 Matt Johnson: grocery store in pharmacy agricultural operation go to a normal farm, you can talk to them and ask them and I guarantee they're going to have an insurance policy at places are the same here.
00:48:00.630 --> 00:48:09.150 Matt Johnson: The only difference is that the risks you face as an American marijuana business are very, very different from what those more standard businesses would face so.
00:48:09.570 --> 00:48:17.610 Matt Johnson: It takes kind of special consultation again particular expertise in the space to figure out what exactly needs being identified and.
00:48:18.120 --> 00:48:25.680 Matt Johnson: You know, making sure that you're working with a company that has the tools to get you covered so and and that's it beyond that we're all just normal people.
00:48:26.970 --> 00:48:35.970 Matt Johnson: Love music love travel love reading like canoeing know we're normal people we just want to help you out the world, be a better, safer place.
00:48:36.660 --> 00:48:42.270 Jonny Tsunami: yeah it's I like that you're saying that because I feel like sometimes cannabis people might just feel like.
00:48:43.230 --> 00:48:53.130 Jonny Tsunami: Well, I don't know how to do this, I, I know I do one little thing, but you know or I know this much about the plant and I know what I want to do, and I know that I want to have a business but.
00:48:53.550 --> 00:49:00.060 Jonny Tsunami: there's a lot of hurdles that are getting in the way, and when you look at cloud score we're talking about security for cash and cannabis.
00:49:00.330 --> 00:49:17.220 Jonny Tsunami: automated risk services contractual risk transfer strategy analysis of operations and security so you've got some nice things here, so you talked about the automated the automotive risk services um when you're talking about say operations and security.
00:49:18.270 --> 00:49:23.220 Jonny Tsunami: How do you break that down would say you know you have asset evaluation fire suppression.
00:49:24.420 --> 00:49:28.830 Jonny Tsunami: How do you how do you break that down let's go into that a little bit the operations and security.
00:49:29.400 --> 00:49:41.040 Matt Johnson: yeah operations and security it's so exciting to me still I could you know I catch myself talking about we're almost an hour of even talking about insurance and i'm still as excited as I could possibly be.
00:49:42.360 --> 00:49:44.910 Matt Johnson: operations and security is a broad.
00:49:46.230 --> 00:49:58.260 Matt Johnson: kind of grew up to cover, but we have a variety of services within that specific area to help our clients, they say, we can get engineers out on site to do advanced inspections of.
00:49:59.250 --> 00:50:05.730 Matt Johnson: You know, cannabis extraction equipment for essence if you're doing butane extraction when's the last time you got your extraction equipment.
00:50:06.510 --> 00:50:12.270 Matt Johnson: It tested you don't know if you need to replace a gasket and the whole thing's gonna blow up, but we can help you find that out.
00:50:12.630 --> 00:50:17.610 Matt Johnson: If you're worried about physical security, maybe you've got a dispensary that's been robbed in the last couple of years.
00:50:18.270 --> 00:50:21.900 Matt Johnson: We partner up with three si security, which is a top notch.
00:50:22.710 --> 00:50:31.860 Matt Johnson: tech driven firm and 50 years ago, these are the guys, who said Oh, we should put ink couches in the bank bags and catch bank robbers if they try and run away with our money.
00:50:32.160 --> 00:50:35.850 Matt Johnson: All now it's evolved in the GPS and some more advanced solutions.
00:50:36.510 --> 00:50:46.980 Matt Johnson: But same concept and they currently boasts 100% apprehension rate in the cannabis industry we're fortunate to work with them really some great folks over there, and you know, maybe.
00:50:47.670 --> 00:50:59.880 Matt Johnson: Again, have been robbed you're really conscious of security, the the riots in oakland or whatever last year, really is a sore spot well, maybe you just need for security yards on site, we can help you find those company.
00:51:01.980 --> 00:51:08.190 Matt Johnson: there's a lot more to it than that you know if you want to get into things like business continuity planning and supply chain management.
00:51:08.820 --> 00:51:15.810 Matt Johnson: we've got some expert partners in the space, who are able to come in, and you know, look at your individual operation and see.
00:51:16.200 --> 00:51:24.960 Matt Johnson: If there's maybe a choke point you've only got one extraction machine, so your entire cultivation operation is going to be in jeopardy, of having your plants just right.
00:51:25.470 --> 00:51:36.870 Matt Johnson: Before you can extract and that machine goes down and things like that so identifying the areas where you face the biggest risk and then coming up with a plan to address that risk and reduce it as much as possible.
00:51:37.380 --> 00:51:42.690 Jonny Tsunami: I was looking at this one so non invasive drones surveys march buildings.
00:51:43.770 --> 00:51:44.280 Matt Johnson: We love it.
00:51:45.900 --> 00:51:51.810 Matt Johnson: Personally, again here i'm a drone enthusiasts that i've got a beautiful little skydio two.
00:51:52.950 --> 00:51:59.820 Matt Johnson: Days get a very cool camera that film with and then it's got six cameras to fly itself around and make sure it doesn't run in anything.
00:52:00.660 --> 00:52:10.470 Matt Johnson: But we do also contract with professional drone companies, instead of amateurs like me who can you don't fly these advanced drones over massive facilities.
00:52:11.460 --> 00:52:22.050 Matt Johnson: inspect the roofer damage inspect any you know broken windows or rust that shouldn't be there and help you come up with the facilities maintenance plan to make sure that you're building stays in tip top spacing.
00:52:22.410 --> 00:52:28.890 Matt Johnson: that's important when you're working with clients who have, for instance, a 2 million square foot greenhouse out in the middle of nowhere Arizona.
00:52:29.700 --> 00:52:41.040 Matt Johnson: you're going to want to protect every edge of that beautiful building that you build in drones are the simplest way to do that in mind, and this is important to.
00:52:41.550 --> 00:52:46.410 Jonny Tsunami: The contracts lease review vendor agreements and stuff like that talking about.
00:52:47.220 --> 00:52:52.440 Matt Johnson: And one of the most important things that sounds so boring edit it surface level.
00:52:53.550 --> 00:53:01.860 Matt Johnson: Contractual risk transfer is huge and so many people don't have it, they if you're in a state like Florida where it's a vertically integrated.
00:53:02.640 --> 00:53:15.180 Matt Johnson: Operation that's mandatory that's one thing i'm growing my own cannabis processing it labeling it and i'm selling, so I control the process, the whole way through there's really no added risk at any point.
00:53:16.380 --> 00:53:18.540 Matt Johnson: You know from that contractual standpoint that.
00:53:19.620 --> 00:53:24.840 Matt Johnson: some degree now you live in a state like California, where you can get separate types of canvas licenses.
00:53:25.920 --> 00:53:30.750 Matt Johnson: Extraction retail cultivation, etc, if you're a retail dispensary.
00:53:31.200 --> 00:53:41.400 Matt Johnson: And you're carrying products from 100 different manufacturers, but you don't have any kind of contractual risk transfer strategy in place well all it takes is one of those manufacturers to have a bad batch of products.
00:53:41.700 --> 00:53:49.050 Matt Johnson: You don't have a product recall a plan in place, you know have product liability transfer to indemnify from the risk that they should be taking on.
00:53:49.470 --> 00:53:59.280 Matt Johnson: You are leaving your bottom line exposed in a huge way and you probably have no idea that is so exposed, but the lawsuit comes around you could be in a lot of trouble.
00:54:00.360 --> 00:54:14.130 Jonny Tsunami: yeah one of the another person I have on as a guest suny he delves in the deals in real estate, one of the things real estate, obviously, is a very big asset when it comes to cannabis businesses, especially because what's the asset right.
00:54:15.060 --> 00:54:19.770 Jonny Tsunami: it's hard to quantify and at this point, although we're getting clearer and clearer to that, but just as important.
00:54:20.400 --> 00:54:36.540 Jonny Tsunami: To the real estate with a real property itself is the actual lease structure upon that property as well, so someone like your company, you can go through that stuff and be an extra pair of eyes to make sure that your clients are being served and best possible way.
00:54:37.320 --> 00:54:46.770 Matt Johnson: As a great insight least review is integral to what we do and we do insurance on the the largest real estate investment trust in cannabis.
00:54:47.430 --> 00:54:57.450 Matt Johnson: just making sure that your insurance policy lines up with the least requirements and you'd be surprised how many folks just don't have the time to go another way to do that, but.
00:54:58.530 --> 00:55:03.720 Matt Johnson: yeah big big part of the risk transfer there and making sure that you're in compliance with all of the.
00:55:05.610 --> 00:55:06.630 Matt Johnson: requirements, you need to.
00:55:07.740 --> 00:55:20.070 Jonny Tsunami: Security cash and cannabis, I was talking like I said to lat last week lonnie he was saying 90% of his clients bank cash the other 10% is electric so the majority of these businesses are running on cash.
00:55:21.060 --> 00:55:28.440 Jonny Tsunami: safety profile of your business right of these businesses So how do you help them out when it comes to cash and stuff like that and quads for that.
00:55:29.130 --> 00:55:34.980 Matt Johnson: yeah cash in particular again, you know, going back to three si they've been the absolute best partners with that.
00:55:37.860 --> 00:55:41.700 Matt Johnson: You get two big voters there, the first is going to be.
00:55:42.540 --> 00:55:50.790 Matt Johnson: A dispensary or kind of cannabis processing HQ or they've got a ballroom on site and that's where they like to store their cash.
00:55:52.200 --> 00:56:06.540 Matt Johnson: The best thing you can do in that scenario is make sure that you restrict access to the ballroom you use a ul rated safe that is resistant to tools and portraits and you again really make sure that you trust the people going into safe we.
00:56:07.590 --> 00:56:11.640 Matt Johnson: have seen all kinds of inside jobs there everything from a security guard.
00:56:12.840 --> 00:56:21.300 Matt Johnson: letting robbers into an ocean 11 style highest where these guys literally cut a hole through the roof of the ballroom and drop them with ropes and full of stuff.
00:56:21.900 --> 00:56:30.060 Matt Johnson: it's not people are very creative the other big risk with cash is when you're moving right moving it from your dispensary to that central location.
00:56:30.990 --> 00:56:37.380 Matt Johnson: We are able to write motor truck cargo insurance policies to cover cash, as well as cannabis cargo and transit.
00:56:37.950 --> 00:56:47.490 Matt Johnson: Similarly to how we implement dash cams and every vehicle that we ensure we make sure that we implement three si security technology and every motor drug cargo client that we have as well.
00:56:48.630 --> 00:56:55.770 Jonny Tsunami: So who can we reach out to how do they reach out to you are our people at home our audience what's the best way.
00:56:57.240 --> 00:56:58.500 Matt Johnson: You can find me on linkedin.
00:57:00.000 --> 00:57:08.580 Matt Johnson: easy to connect with like everyone in the industry if you're an insurance broker who wants to learn more please feel free to visit our website at quad score calm.
00:57:08.940 --> 00:57:24.000 Matt Johnson: Can email us at info at quad score calm if you're a cannabis business owners would love to connect with you directly and get you in touch with you know local expert insurance broker will can help you find the right policy, whether it's with us, or one of our competitors.
00:57:24.840 --> 00:57:32.670 Jonny Tsunami: And I know I asked you this before, and this is actually for the show but uh I said, are you a cannabis proponent and.
00:57:33.900 --> 00:57:45.450 Jonny Tsunami: activist and you said you were and perhaps we can partake per se every once in a while that being said, are you a tivo hybrid indie command.
00:57:46.590 --> 00:57:51.660 Matt Johnson: Oh no, no, this is this is 2021 you have to be educated on the European profile on.
00:57:53.790 --> 00:57:54.720 Matt Johnson: day one.
00:57:55.740 --> 00:58:08.940 Jonny Tsunami: thing I give I do that because most of the time i'm thinking well you know yeah I know those that stuff but I don't know if my insurance guy does Oh, I feel, even better, now I feel even better so talk to me give it to me, we got a couple of minutes.
00:58:09.540 --> 00:58:09.960 yeah.
00:58:11.160 --> 00:58:24.090 Matt Johnson: I mean, obviously I would never do anything against the laws of the great state of Georgia, and certainly never admit to it on a recorded video session, but when i'm traveling I might be a different story.
00:58:25.560 --> 00:58:31.860 Matt Johnson: yeah I mean it's all about finding a reputable grower who you know I imagine you are one you know what you're doing.
00:58:33.540 --> 00:58:49.920 Matt Johnson: You it's a plan you know you're growing a plan it's harmless, the core tenants of the national cannabis industry association or education advocacy and community, and I think those are the three biggest things that we can do to advance you know cannabis normalization and American.
00:58:50.940 --> 00:59:04.800 Matt Johnson: teach people about it, whether every new hire that comes in, if they've got the time and the interest, I will take them aside for a half hour session and just talk them through what are the different compounds in the plant, what are the risks associated with it.
00:59:06.210 --> 00:59:10.980 Matt Johnson: Why do we think this is such a great industry to invest and and help ensure.
00:59:12.150 --> 00:59:16.380 Matt Johnson: Just having people understand what they're talking about is the easiest way to get them comfortable with it.
00:59:17.760 --> 00:59:26.070 Matt Johnson: there's just been a huge lack of that over the last 50 years thanks to Richard Nixon and some other folks but we're making a lot of progress so.
00:59:26.760 --> 00:59:28.890 Jonny Tsunami: I always say, if you want to own it, you have to be.
00:59:31.170 --> 00:59:35.610 Jonny Tsunami: Somebody in the closet for this one, so this concludes our broadcast day.
00:59:36.150 --> 00:59:44.640 Jonny Tsunami: Today we interviewed Matthew Johnson lovely gentleman Vice President of quad core in Atlanta Georgia, he is your go to man for any kind of risk mitigation management.
00:59:45.060 --> 01:00:06.180 Jonny Tsunami: And we're gonna have to close it out for their i'm Johnny tsunami, this is planning pocket low low a less taboo view talk radio dot nyc and next week, I have a special guest Christian taco low low my college buddy who actually was an inspiration for the title of the show.
01:00:07.620 --> 01:00:16.410 Jonny Tsunami: We, and he and I both love cannabis so we'll be talking in detail about it matt thanks for being on the show everyone else will be back.
01:00:17.340 --> 01:00:18.030 Matt Johnson: thanks for having me.
01:00:19.110 --> 01:00:19.680 Jonny Tsunami: Thank you.
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