Vetting your Security Consultant: Due Diligence in Discovering the Wolf in Sheep’s Clothing

Regulatory compliance. One of the highest priorities and greatest challenges for organizations competing in a licensing process for a state cannabis program.  Most state programs place a significant percentage (20% or more) of the application scoring on a holistic security plan that incorporates a symbiotic relationship between physical security features, policy & procedures and staff training.  With such high stakes, many organizations rely on a security consultant to handcraft their operational security plan for their application.

But, how do you know what security consultant or self proclaimed ‘subject matter expert’ is qualified, capable or competent to create the intellectual and operational security content to  achieve an award winning plan? Due diligence.

There is an onus on the part of your organization to vet the security consultant and verify their qualifications and successes. Here are six (6) criterion to assess and validate when considering a partnership.

QUALIFICATIONS

What quality or expertise does your perspective security consultant bring to the table? Many times there is a misnomer that a security integrator or guard service has the knowledge, skill and proficiency to design the  system or security system technology and/or security operational master plan that will  fulfill regulatory compliance AND  be conducive to operational workflow.  Ask for the perspective consultants’ pedigree(s) and experience.  Often times, consultants will stretch the validity of their qualifications.  Listing a college or university on a resume does not mean that the consultant graduated from that school. To cite a popular quote floating around the Internet right now’ “Just because you’re a great pilot, doesn’t mean you’re a great air traffic controller”. The pilot is a part of the bigger system, look for a security vendor that has the qualifications to plan for and control all of the moving parts! Lastly, CHECK and VERIFY the pedigree(s) and experience.  This will be a re-occurring theme on all six (6) of the criteria.

PROVEN RECORD

The great Connie Mack once said “You can’t win them all….”, but look for a security consultant that has proven success in state application writing.  The security portion of a state application constitutes a percentage of the total score.  Just because a medical or adult-use cannabis organization did not win a license does not mean that the security portion was not scored high within the application. Look not only at the total successful applications that the consultant was been involved with, but the total number of  clients that the consultants is involved with. This will segue into the next criteria, references. There is a growing trend with ‘consultants’ who purport to have award-winning clients in dozens of states.  Just because the consultant have spoken with a successful organization, does not mean that they were integral in winning them a licence! Once again CHECK AND VERIFY!

REFERENCES

CHECK and VERIFY! The ability for a prospective security consultant to provide a list of professional references  is crucial in the vetting process.  The reference provided should be able to attest to the qualifications, skill and proficiency of the security consultant.  When checking on references, do not be afraid to ask them for limitations or deficiencies of the perspective consultant.  References are critical….don’t rely on reputation alone.  Successful security  leaders of the past may not be verse to the industry standards and environment of today. Call on references to CHECK and VERIFY that the security consultant will  be the right fit for the impression, character and feel of your organization.

FINANCIAL STABILITY

Financial stability may not be the first thing that you think of when vetting a security consultant, but is an important criteria.  The financial stability of a consultant shows not only responsibility, but practical and operational relevance for their business, but can transcend into the operational  security plan for your organization.  A financially stable consultant can also ensure that the firm or organization you choose to represent your security views will be viable for years to come, creating a long-term partnership.  This partnership is essential in honing the security plan for optimal efficiency.  Don’t be concerned about CHECKING and VERIFYING a consultant’s financial position…be concerned if they are not forthcoming with that information.

ASSOCIATIONS

Ask the security consultant about affiliations or associations they are connected with.  Industry leading associations provide current trends, industry standards & norms, case studies, models and specifications .  An affiliation with these associations help ensure that that the security consultant has the accessibility to the newest industry information.  This is critical as the criminal element and regulatory compliance continue to change. Check and verify that the perspective security consultant is current in their membership and in good standing.

INSURANCE AND LICENSING

The last verification one can do to vet a security consultant is to validate the appropriate licensing and insurance at a local or state level.  Horror stories abound of organizations that contract with vendors or consultants to find out at the time of inspection, that they are not licensed or insured to do the work.  This verification should be completed before any contract is signed!

Be cautious of the security consultant wolf in sheep’s clothing. Due diligence on your part prior to entering into a contractual agreement can save time, effort and anxiety in the end!  Feel free to contact us for guidance with any security risk management concerns!

Engaging Employees in Workplace Safety

The long term success of the medical cannabis industry rides on its people. Business leaders will push the overall strategy and direction, but it is their employees who will primarily be tasked with making the company go.  Employee engagement and safety is paramount to any business, and the cannabis industry is no different.  One great way to help foster engagement in the safety program is through the formation of a safety committee.  Safety committees increase buy in among employees, improve relationships between employees and management, help efficiently solve safety issues, and ultimately make your grow facility or dispensary a better place to work.  The discount on worker’s compensation insurance for those in Pennsylvania is only an added bonus!  Below we’ve highlighted a few key considerations when forming a safety committee.

1. Choose your members wisely! It is important to choose employees who are already engaged with the organization and are mid to high-performing employees. Ideally they have some informal influence within the organization but are not necessarily in a management position. Provide opportunity for new members to join periodically throughout the year and also rotate members on a regularly scheduled basis to continually have fresh eyes on the safety function of the organization.
2. Address safety concerns and issues immediately: Not only will this positively impact the overall safety of your workforce, but it will also help your safety committee gain credibility as an impactful program within the organization. Give all employees a medium through which they can submit safety improvements and suggestions. Communicate who is on the safety committee to the entire organization so employees know who to go to with safety concerns.
3.  Include technical training: Equip not just members of the committee but all employees with the skills and training needed to perform daily tasks in a safe and efficient manner. Training on proper lifting techniques, CPR certification, and fire safety are all great ways to ensure a safer employee population. Regularly conduct personal protection equipment assessments especially in areas with a higher exposure to C02, CO, pesticides, and fungicides.

Finally, do not create your safety committee on your own! Partner with a risk management consultant who can advise on choosing members, attend initial meetings, and even provide meeting content.  One great meeting topic to consider right away is employee crime response training.  Be sure to check out Viridis Security Group’s blog on Employee Crime Response Training for more ideas.

– The Viridis Team

 

 

We Received a Medical Cannabis License…Now What?!

The exciting launch of Pennsylvania’s medical cannabis program has left a select few businesses racing to operationalize as the first quarter of 2018 quickly approaches. Teams have been finalized, land has been secured, and build outs have begun. An often overlooked aspect of any company’s build out is the insurance program. As groups begin to release capital in the coming weeks and months, it is important to ask the following three key questions:

1. Do we own the property? Let’s assume, given the short timeframe to operationalize, that the answer is yes. Is your business covered in the event of an injury that occurs on the land you now own? General Liability coverage is imperative for any business and the cannabis industry is no exception. Be sure to carefully review the policy forms to ensure coverage extends to construction exposures at ALL of your operating locations.
2. Have we started construction? If your answer is yes, it is important to evaluate the need for Builder’s Risk coverage. Builder’s Risk insurance is designed to cover the property itself in the course of construction. Review any contracts held between your general contractor and subcontractors to determine where each party’s insurable interest begins and ends.
3. Have we hired employees? Businesses in PA with employees on payroll are legally obligated to obtain Workers Compensation insurance. A Workers Compensation claim could arise simply from an employee driving to and from the bank if he or she is acting within the breadth and scope of their duty as an employee. Workers Compensation premium is based on the class of employee and the corresponding payroll dollars associated with that class. Many new ventures experience difficulty projecting their first year payroll in order to receive a rate from the Workers Compensation carrier. For this reason it is important to partner with an insurance company that allows quarterly audits so that your plan accurately reflects projected payroll for the year.

The infant stages of any young business will always have certain risks associated with it. It is important that your business partners with a risk management consultant that understands the cannabis industry and does not advise purchasing coverage not needed at this stage in your operation. A final vital consideration during the build out is your security plan. Securing your facilities properly will ultimately lead to a decrease in the need for insurance claims. Check out our partner, Viridis Security Group, and their blog on “Four Security Considerations for New Cannabis Businesses” for more information.

– The Viridis Team

                                 

Four Security Considerations for New Cannabis Businesses

Congratulations, you’ve recently acquired a coveted legal cannabis business license and now, you have just months to accomplish your application plans and make your new cannabis business “operational.”
Whether you’re starting a grower/processor facility or a dispensary, there are an overwhelming number of issues to be addressed; but we, here at Viridis Security Group, believe that the following Security specific concerns have to be at the top of your list.

We sat down with Viridis Security Group’s Director of Professional Services Chris Hinnershitz and Corporate Security Specialist Jim Minninger to discuss four commonly overlooked points for maintaining top-notch security while moving towards “operational” status. For more info on Viridis Security Group’s list of services, including physical location risk assessments and security integration please visit the VSG website. Viridis Security Group

1. Temporary Security Measures
Especially in states like Pennsylvania, where cannabis grower/processor and dispensary license winners (and proposed locations) are listed publicly, it is imperative that temporary security measures are adopted.
Any enterprising individual can check out the PA Dept. of Health’s website or search the deluge of recent news stories to see where new cannabis businesses will be located. Award winners can expect to see an influx of mail, an ongoing media presence and the occasional “lookey-loo,” as they build out.
Although stories of pre-operational vandalism or work disruption from “protesters” are few; new cannabis businesses owners should be aware of the public perception of legal cannabis in the proposed build location and be prepared for the influx of both positive and negative attention.
Even before the actual business security systems are installed there should be some form of temporary security in place to protect the location. Included in these build out security measures are camera systems, a secure perimeter fence, regular patrolling as well as lighting. Minninger suggests making sure the location is well lit from day one.

“You can’t protect what you can’t see,” he said.

This added illumination not only makes the location a less desirable target for crime but also perpetuates the feeling of openness and professionalism to the surrounding community.

Have you established a strong, temporary security plan for the length of your build out? Why not let VSG do a preliminary risk assessment of the proposed site and see what specific security measures are right for your business?

2. Communication with local law enforcement
After 20 years of service as a police officer in Montgomery County, PA; VSG’s Chris Hinnershitz, suggests there is an immediate need for new cannabis businesses to make contact with local authorities during their respective build out processes. With increased publicity, comes increased need for patrols and regular police presence on site. The best way to ensure this police presence is to make an early, concerted connection to those that will be patrolling the area.

“Having a good relationship with local law enforcement is imperative to providing a safe and secure environment for employees and guests at your legal marijuana organization during and after the build out,” said Hinnershitz.  “Coordinating your emergency operations procedures with local law enforcement allows for a better response in a time of crisis.”

While not common, a recent article in the Reading Eagle Times newspaper (PA) suggests Muhlenburg Township (PA) authorities are investigating the idea of a “host tax” for incoming businesses that require extra police patrols.

Have you reached out to the local law enforcement officials in your prospective business location? Why not let a former officer handle the introduction?

The Viridis Security Group staff boast law enforcement connections throughout the country and have helped a number of cannabis businesses make positive relations in their respective communities. VSG would be happy to offer consultation or be the lead voice as you guarantee a positive law enforcement relationship during your build out.

3. Properly Vetted Contractors
Whether your new cannabis business site requires some updating or you’re building from scratch, it’s assured that there will be quite a few contractors entering and exiting your location. These contractors will have access to information about the structure, the systems, the layout, intellectual property and any number of other specific details of the business.

According to VSG staff, it is imperative that all contractors (and their employees) be strictly vetted before they have access to the property. This is especially true for entities coming from out-of-state to open businesses with the help of service vendors who they may not have had a previous relationship.

All those with access to the facility should have updated State and Federal criminal background checks and carry appropriate state contractor’s licensing/insurance.

All Viridis Security Group clients are provided with processes to ensure their employees are properly vetted and trained during their cannabis-industry employment. These same standards can be applied to contractors during build out.
Contact Viridis Security Group for more info on how to ensure your build process is completed by properly vetted contractors.

4. Specific Cannabis Industry Insurance
There are unique challenges and risks associated with the burgeoning cannabis industry. With those unique concerns, comes the demand for an industry-specific insurance package catering to the needs of new cannabis businesses. Combined with a robust security plan, a comprehensive insurance offering is the final piece to maintaining a foolproof security plan during the life of your cannabis business. Viridis Security is currently working with strategic partner Viridis Insurance and Benefits to provide this holistic approach to business security.

For more info on Viridis Insurance and Benefits and how these two entities work together. Check out the Viridis Insurance website.
Viridis Insurance and Benefits