The cannabis industry has experienced rapid growth and expansion in recent years, providing lucrative, rewarding and exciting times for businesses at all levels of the sector. However, as profits grow, financial risk levels may also increase.
Accounting for risks and perils, such as fires, and implementing adequate loss control measures is an integral part of operating a business regardless of industry or specific operations; however, these perils may be of particular danger to those involved in the production, cultivation or storage of flammable materials, such as cannabis plants and products.
With this in mind, businesses throughout the cannabis industry should consider the following steps to mitigate fire-related risks in the workplace:
- Install safety measures. Smoke detectors and fire suppression systems, including sprinklers set to automatically activate after detecting a fire, should be considered a top priority for any business in the cannabis sector. Carbon monoxide detection systems may also be advisable as excessive levels of this gas can pose a significant fire hazard while also potentially contributing to unsafe air quality for workers.
- Mandate training. Employees must be made aware of various fire-related risks and hazards in your workplace. This can help minimize the likelihood of employees themselves causing a fire while also educating them on how to recognize when conditions in the workplace may need to be addressed.
- Establish protocols. Create fire suppression and fire response plans to help all members of your organization understand and communicate any issues involving fire-related risks. Having these practices in place in advance of a fire can help optimize response times and minimize losses.
- Consider infrastructure. Think about various physical components of your workplace. For example, using fire-resistant building materials may help limit the spread of flames and embers. Similarly, your business should ensure ventilation systems are adequate to reduce airborne flammable materials.
- Consult professionals. When installing various systems or equipment, enlist the services of a qualified professional. For example, a licensed electrician can help ensure wiring, circuits, breakers and other components of your company’s electrical systems are in good working order.
- Improve lighting. Good lighting can help reduce the likelihood of many types of accidents or errors, including fires. Install fixtures intended for indoor use capable of providing ample illumination without generating significant heat.
- Acquire insurance. Even the most diligent and experienced businesses may eventually experience an accident. In such cases, having adequate commercial property insurance and other forms of coverage for your business can be critical in limiting financial losses and allowing you to get back on your feet.
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This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.