Committee Blog: How to Build a Cannabis Business Continuity Plan Before the Next Natural Disaster 

“The power was out for days, and we had no cooling. We lost inventory,  time, and trust.” 

— Reported sentiment from multiple Texas cannabis retailers after Hurricane Beryl (July  2024) 

The Problem: Natural Disasters Are Crippling Cannabis Businesses 

In July 2024, Hurricane Beryl made landfall near Matagorda, Texas, as a Category 1 storm.  Over several days, coastal and inland areas were recorded with 10–16 inches of rain, 7-foot  storm surges, and mass power outages that left over 2.7 million homes and businesses in  the dark¹²³. Tragically, at least 44 deaths were attributed to extreme heat and extended  blackouts. 

For cannabis operators, the consequences were severe. Indoor cultivation facilities  lost power, triggering rapid temperature spikes, humidity swings, and widespread  crop failure. Mold outbreaks and compliance issues followed. Outdoor growers faced  flooded fields, soil contamination, and damaged irrigation systems. Retailers saw  product spoilage from failed refrigeration, interrupted logistics, and days, sometimes  weeks, of lost revenue. 

Flash Flood Catastrophe in Texas Hill Country, July 2025 

Over the Fourth of July weekend in 2025, central Texas was struck by one of the deadliest  inland flash floods in decades. Torrential rains—some areas receiving an astonishing up to  20 inches in just a few hours—triggered “life-threatening flash flooding” across Kerr and  Gillespie Counties, including communities like Kerrville, Hunt, Comfort, and neighboring  areas. The Guadalupe River surged dramatically: in Hunt it rose 22 feet within two hours,  reaching heights of nearly 30 feet, while in Kerrville and Comfort water levels also spiked  rapidly. The disaster resulted in a staggering business loss and a devastating death toll  exceeding 130 people, with at least 107 fatalities in Kerr County alone, and 27 lives lost at  Camp Mystic, an all-girls Christian summer camp.

A Northeast Wake-Up Call: July 2025 Flooding in New Jersey 

July 25 also brought mass destruction to the east coast, New Jersey experienced three  separate flash flooding events that left businesses scrambling across counties. In Somerset  and Union counties, sudden downpours overwhelmed storm drains, damaged storefronts,  and prompted emergency shelter-in-place orders⁶. 

Nichelle Santos, CEO, CannaCoverage Insurance  saw the devastation  first hand, as a resident of Somerset County. Santos stated, “In towns like Plainfield, Warren, and Scotch  Plains, road closures and impassable intersections left employees stranded and operations  halted. Nearby, cannabis retailers and small grows weren’t spared: reports of water  damage, mold remediation, and delayed shipments mirrored post-hurricane conditions  hundreds of miles south.  From flash floods in North Plainfield to sewage overflows in  Watchung, the message was clear, extreme weather events are now a monthly concern, not  an annual surprise.” 

Shauna Blackburn, Executive Vice President of Underwriting and Development, The Cannabis Insurance Company, stated, the recent tragedies, each of historic proportion,  reveal stark vulnerabilities: both to natural disasters and the fragile regulatory climate  around hemp and cannabis. Businesses in these sectors need tailored support, ranging from  risk mitigation disaster preparedness, insurance services, and regulatory relief, to  sustainably recover from this crisis.” 

The Impact on Cannabis Operations 

1. Production Losses 

Indoor grow rooms depend on consistent environmental control. Just a few hours  without electricity can undo months of progress. During Beryl, many facilities  reported total crop loss. In New Jersey’s July 2025 flooding, operators with ground level HVAC systems saw mold take hold in less than 48 hours. 

2. Financial Fallout 

Cannabis operators don’t qualify for FEMA or SBA recovery programs. And  insurance? Many policies exclude losses tied to flood, mold, or spoilage. Whether  you’re in Texas or New Jersey, unexpected downtime can translate into five- or six figure losses. 

3. Employee Safety & Stability 

From flooded entryways to collapsed ceilings, the risks extend beyond plants.  Several NJ businesses were forced to close for repairs, leaving hourly staff without  work or wages. And even when facilities were operational, hazardous air quality  from standing water or compromised ventilation slowed reopening timelines.

A Unique Vulnerability 

The cannabis industry faces challenges that amplify disaster risk: 

• No Federal Relief: Cannabis remains federally illegal, cutting off FEMA support and  most emergency grants. 
• Strict Compliance Requirements: Even during emergencies, cannabis operators  must maintain precise seed-to-sale tracking. 
• Limited Insurance Options: Business interruption insurance is notoriously limited. • Complex, Perishable Inventory: Cannabis isn’t shelf-stable. 

“Cannabis businesses are experiencing the same climate threats as others,  but with fewer tools to recover.”⁴ MJ Biz Daily 

And these threats are intensifying. According to NOAA’s 2025 Atlantic Hurricane Outlook,  forecasters expect an above-average season with 13–19 named storms, a clear warning for  coastal and inland operators alike⁵. 

The Solution: Proactive, Cannabis-Specific Continuity Planning 

Waiting for relief that never comes is not a strategy. At Canna Shield Compliance, we  specialize in designing Business Continuity Plans (BCPs) tailored to the unique needs of  cannabis operators. Our framework ensures you can weather the next storm and every  disruption beyond it. 

1. Risk Assessment & Infrastructure Vulnerability 

We map your facility’s exposure to floods, wind damage, and power loss. By identifying  critical systems, we prioritize upgrades and backup solutions. 

2. Operational Redundancy Plans 

From backup generators and battery systems to alternate cultivation sites, we establish fail safe processes that keep your grow rooms and dispensaries running when the grid goes  down. 

3. Employee & Safety Protocols 

Your team is your most valuable asset. We craft clear evacuation procedures, on-site shelter  plans, and communication trees to protect staff and maintain compliance under duress.

4. Insurance & Compliance Alignment 

Cannabis Insurance falls under Excess and Surplus Lines, otherwise known as the “high  risk” category.  Navigating insurance exclusions and state regulations is complex. We review  the insured’s policies, recommend carriers who specialize in cannabis, and align your BCP  with regulatory requirements to avoid costly lapses. 

5. Resilient Supply Chain Models 

Disruptions rarely happen in isolation. We help you develop and expand alternative  supplier networks both in state for cannabis; and for hemp in and out of state, to ensure you  can source inputs and distribute products, no matter the local conditions. 

Don’t Let the Next Storm Destroy What You’ve Built

Natural disasters aren’t hypothetical; they’re happening now, and their frequency is rising.  The difference between recovery and ruin is preparedness. Whether you’re a microbusiness  or a multi-state operator, your cannabis operation demands a strong continuity plan. 

Protect your license. Protect your business.  Book your free disaster risk assessment today.

Schedule Online: www.cannashield.net
Call: 732-433-0557
Email: info@cannashield.net 

References 

¹ CNN – “Hurricane Beryl Damage in Texas,” July 9, 2024 

² Texas Tribune – “Small Businesses After Hurricane Beryl,” July 11, 2024 ³ National Weather Service – “Beryl Recap,” July 2024 

³ National Weather Service – “Beryl Recap,” July 2024

⁴ MJBizDaily – “High Winds, Flooding Shutter Marijuana Operations,” July 2024

⁵ NOAA – “2025 Atlantic Hurricane Season Outlook,” May 2025 

⁶ MSN – “NJ County Issues Shelter-in-Place After Dangerous Flash Flooding,” July 2025 

⁷ NJ101.5 – “Somerset, Union County Businesses Begin Recovery After July Flooding,”  July 2025

Member Blog: Navigating Chemical Safety in Cannabis Extraction

As the cannabis industry continues its rapid expansion, the demand for high-quality  cannabis extracts for medicinal, recreational, and industrial applications is skyrocketing. With this growth comes increased pressure on businesses to innovate, scale production, and meet evolving operational challenges — all while navigating a complex web of occupational safety and regulatory requirements.  

Among these, chemical safety in extraction processes stands out as one of the most critical and often underestimated priorities. Whether you’re a start-up scaling your first extraction line or an established operator expanding capacity, mastering chemical safety is essential not only for protecting your workforce but also for safeguarding your business from legal, financial, and reputational risks.  

Understanding Core Extraction Methods and Their Risks  

Cannabis extraction techniques generally fall into two main categories — solvent-based and non-solvent-based — each with unique safety considerations for workers.  

Solvent-Based Extraction  

Methods such as hydrocarbon extraction (using butane or propane), supercritical CO₂ extraction, and ethanol extraction are widely used for their efficiency and product quality. However, they bring inherent risks to personnel:  

• Hydrocarbons are highly flammable and explosive, requiring closed-loop systems, continuous gas detection, and rigorous engineering controls to prevent catastrophic  incidents.  
• Supercritical CO₂ is less hazardous from a flammability standpoint but involves extremely high pressures, creating potential for mechanical failure or pressure-related  injuries.  
• Ethanol is effective and widely used but introduces both flammability and toxicity concerns that must be carefully managed through proper ventilation, bonding, and  grounding.  

Non-Solvent-Based Extraction  

Techniques like mechanical separation and rosin pressing eliminate hazardous solvents, reducing chemical risk. However, they present physical hazards such as burns from high temperature plates, crushing injuries from mechanical systems, and ergonomic strain. These methods also face challenges with consistency and yield, requiring careful process design and operational controls.  

Chemical Safety and Regulatory Compliance: More Than a Checkbox 

The hazards in cannabis extraction extend well beyond the risk of fire or explosion. Workers can be exposed to toxic vapors, resulting in respiratory irritation, chemical  burns, or chronic health effects. Without proper ventilation, engineering controls, PPE, and regular safety audits, these risks can accumulate and create systemic vulnerabilities that compromise worker health.  

The consequences of neglecting safety are real and severe. In 2021, a butane extraction  explosion in Oregon tragically killed a worker — a stark reminder that safety failures are not just regulatory issues, but human ones. Beyond injury and loss of life, incidents like this expose companies to lawsuits, costly downtime, and lasting damage to their reputation.  

Regulatory requirements also mandate safe handling of hazardous chemicals, proper facility classification, and worker training. Extraction facilities must comply with applicable OSHA standards, NFPA codes, and local fire and building regulations. Documenting  safety procedures, training employees on hazard communication, and maintaining  inspection records are essential to demonstrating compliance and reducing liability.  

Building a Culture of Safety: Your Most Effective Control Measure 

The most effective way to manage chemical safety risks isn’t just installing better  equipment — it’s building a culture of safety from the ground up.  

• Leadership sets the tone. When management prioritizes safety and fosters open  communication, it empowers employees to identify and address hazards proactively. 
• Training is non-negotiable. Comprehensive education on chemical handling, hazard  recognition, emergency response, and PPE use helps prevent accidents before they  occur.  
• Feedback loops matter. Encouraging workers to report unsafe conditions and propose improvements builds continuous improvement into your safety culture.  

Pair these efforts with regular safety audits, detailed documentation, and third-party assessments to verify compliance and maintain operational excellence. As extraction methods evolve, so must your safety protocols — agility and continuous learning are key.  

Best Practices for Safer Extraction Operations  

To translate safety principles into day-to-day practice, cannabis processors should implement the following occupational safety best practices:  

1. Use Certified Closed-Loop Systems: Ensure hydrocarbon extraction systems meet UL 1389 or equivalent standards and are approved for use by local authorities.
2. Install Continuous Gas Detection: Real-time monitoring for flammable gases significantly reduces ignition risk and improves emergency response capabilities.
3. Ventilation and Explosion Protection: Adequate airflow, proper exhaust systems, and classified electrical equipment are essential where flammable vapors may accumulate. 
4. Implement a Permit-to-Work System: Formalize procedures for hot work, maintenance, and system modifications to prevent accidents and ensure safe operations. 
5. Align With Emerging Standards: Stay informed about evolving codes such as NFPA  420, which addresses fire protection in cannabis processing facilities.

By embedding these practices into daily operations, businesses not only reduce risk but also demonstrate their commitment to worker safety and regulatory excellence.  

Looking Ahead: Safer, Smarter, and More Sustainable Operations 

The future of cannabis extraction is rooted in innovation, safety, and sustainability. Companies are increasingly adopting technologies that enhance occupational safety —  from automation and remote monitoring to advanced solvent recovery and control systems. These advancements not only reduce worker exposure and risk but also improve operational efficiency and reduce downtime.  

Evolving standards such as NFPA 420 (Fire Protection of Cannabis Facilities) and UL 1389 (Plant Oil Extraction Equipment) will continue to shape how extraction facilities design and operate their processes. Staying ahead of these developments helps  businesses avoid compliance gaps and positions them for success as the regulatory landscape matures.  

Ultimately, chemical safety in cannabis extraction isn’t just a regulatory obligation — it’s a strategic advantage. Companies that prioritize worker protection and compliance  safeguard their teams, strengthen their operations, and position themselves as leaders in a rapidly evolving industry.  

Partnering for Safer, Compliant Extraction Operations  

Navigating chemical safety in cannabis extraction can be complex — but you don’t have  to do it alone. If your organization is developing or refining extraction processes, Rubicon EHS can help you design and implement robust occupational safety programs tailored to  your facility and regulatory environment.

Contact Rubicon EHS to learn how we can support your efforts to build a safer, more compliant, and more resilient extraction operation.

Member Blog: Why Cannabis Retailers Ought to Focus on Customer Insights to Increase Revenue

Written by: Ja Aphale, Founder, The Consulting Joint

Why Customer Insights?

Retailers in any industry, especially cannabis, are finding it harder to retain customers and grow their business due to the highly competitive nature of consumer packaged goods coupled with slim margins. 

Consumers are inundated with choices, and most cannabis retailers likely carry similar inventory with similar discounting strategies. This makes it difficult for the consumer to choose where to spend their money. What if the consumer didn’t have to decide? What if they only thought of one or two go-to retailers that met all of their needs and more? 

Focusing on customer insights is where the opportunity lies for cannabis retailers to increase revenue and gain a competitive advantage. Analyzing what customers purchase and what customers say about their experience, then taking revenue generating decisions based on the analysis, can help cannabis retailers stand out. 

How To Get Started

When I was at Walmart eCommerce, I learned so much about the world of online and in-person retail from a Goliath in the industry. We tracked almost everything from average order value, units per dollar, and average selling price to paid web traffic, product page health, and more. 

Not all retailers have the luxury of nationwide warehouses / stores and the ability to maintain the long tail of products, let alone house a global data science team. So let’s cut out the noise and get started with a few key metrics that will help us identify customer groupings: 

• Cart size 
• Cart mix (what products are purchased together)
• Repeat orders
• Product type 

Groups of customers will begin to emerge such as: the customers who always purchase similar products every two weeks or the customers who only purchase one product type. You may notice certain products are purchased together more often than not across certain groups. Many pieces of information will come to the surface when paying closer attention to a few key metrics. 

What To Do Next

Now that there’s a better understanding of what purchasing habits your customer has, we can layer in additional pieces of information to fortify the analysis. Customer feedback data such as written reviews on the retailer or numeric ratings on products is a great source of information cannabis retailers can use to directly address customer needs and increase customer sentiment. 

If a cannabis retailer currently does not have access to customer feedback data, there are several feedback collection mechanisms that can be established such as email surveys, webpage pop-ups, and more.

Retailers should also review generalized data on lifestyle habits, cannabis education / comfort level, and communication preferences based on the customer groups identified. 

Revenue Generating Actions

After analyzing customer purchase habits and feedback, you’ll end up with a list of fruitful insights. It’s time to take revenue generating actions that can help your business grow. Here are a few next steps that will be informed by the analysis: 

• Optimize inventory 
• Provide tailored product suggestions 
• Modify marketing communications
• Create loyalty or subscription programs
• Host in-person or virtual customer experiences 

The examples above are decisions your business can take to increase customer sentiment and revenue, and position your business as the go-to cannabis retailer for consumers. 

The analysis and planning process can take anywhere from one month to three months. It’s very important to track the benefits received from any revenue generating actions implemented – to see if you should stay the course or pivot to another decision. Remember that data is the best asset to validate (or invalidate) decision making!

Conclusion

To conclude, cannabis retailers ought to focus on customer insights to increase revenue and gain a competitive advantage. Attending to what your customers need serves as a channel to build a strong relationship with your customers, who inadvertently will champion your products / services and help your business grow. Building lifelong customers is the goal, and that is very possible with the right attention to customer insights. 

If you’d like to brainstorm further on how to grow your cannabis retail business, feel free to schedule a complimentary 1hr consultation call with me via this sign-up form.

Committee Blog: Benefits of Temporary Labor in Cultivation 

One key area where compliance and operational efficiency intersect is deciding how to fill hiring needs, especially when dealing with the cultivation cycles and the fluctuating needs for extra hands around the garden. While most operators understand the value of training and retaining full-time staff, keeping staff off-cycle can be costly. Bridging the labor gap with on-demand temporary workers is common in agriculture, including cannabis. Trimmers and harvesters, also known as farm workers, are a vital part of any cultivation operation, but due diligence of temporary staffing agencies is critical. 

What Is An FLC? 

A Farm Labor Contractor (FLC) license isn’t something new; it has existed for decades, but may still be relatively unfamiliar within the emerging cannabis industry. 

This specialized federal license is required for: 

Any individual or business entity that, for a fee, engages in recruiting, soliciting, hiring, employing, or furnishing agricultural workers as part of farm labor contracting activities (U.S. Department of Labor, n.d.). 

Basically, if you bring a team of workers to help harvest or trim, but they are not full time employees, a federal FLC license, and possibly a state license, is required. The FLC licensing process, similar to cannabis licensing, is pretty rigorous, and only individuals who meet all of the requirements can obtain the license. 

Eligibility Requirements for an FLC License 

To become a licensed Farm Labor Contractor (FLC) under the U.S. Department of Labor (DOL) and comply with the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), applicants must meet the following criteria: 

1. Age: Must be at least 18 years old. 
2. Background Check: Fingerprints and Pass a federal background check to ensure no convictions for crimes of moral turpitude (e.g., fraud, dishonesty) or violations of labor laws, including MSPA provisions. 
3. Exam: Pass an MSPA exam that tests knowledge of federal labor laws, worker protections, and contractor responsibilities. 
4. Insurance Requirements:Provide proof of workers’ compensation insurance and unemployment insurance. 
5. Documentation: Valid photo ID and driver’s license, submit work agreements, recruitment materials, and housing disclosures (if applicable). 
6. Fees: Pay the required licensing fees and annual renewal. FLC licenses must be renewed every year, and any updates (e.g., operational changes) must be reported to the DOL. 

In addition to federal registration, some states have their own process for licensing or registration before any contractor can begin staffing. For example, California requires FLCs to pass an exam by proxy, complete 9 hours of Labor Law education, attest to never having sexual harassment claims, and pay additional fees to obtain a separate license through the California Department of Industrial Relations. States like Florida and Oregon also have their own registration, fee, and compliance requirements. 

Why This Vetting Process Matters 

The licensing process for FLCs is rigorous to protect the rights of agricultural workers. It ensures: 

• Only individuals with a clean legal and ethical history are licensed. 
• Contractors are knowledgeable about federal and state labor laws. 
• Businesses working with FLCs can trust that they are compliant with regulations, reducing risks of penalties, lawsuits, or worker exploitation. 

By requiring extensive documentation, passing an exam, and undergoing a thorough background check, the DOL ensures that FLCs are highly vetted professionals capable of operating responsibly and legally. Compliance is such an important part of any cannabis operation and this vetting process offers peace of mind when choosing to staff through an FLC instead of hiring full time employees. 

Common Operator Missteps 

Operators must exercise caution when choosing any one of the hiring options, especially when classifying and paying wages to workers or contractors. Not complying can lead to significant penalties. 

Wage Claims 

In today’s landscape, previous practices such as paying trimmers “by the pound” could result in wage and hour claims. Even if cultivators pay piece rate, they are still required to meet minimum wage. Operators must comply with the laws regarding hourly pay, overtime, rest, and recovery periods. 

Misclassifications 

Classifying an employee as a 1099 independent contractor is a common mistake. According to the Department of Labor (DOL), penalties can be up to $25,000 per violation, as well as payment of back wages, unpaid overtime, rest breaks, and meal periods that the employee would have received (U.S. Department of Labor, n.d.). 

As of the latest available data, New York and California are among the states with the highest numbers of misclassified workers in the U.S. In New York, approximately 873,000 workers in major low-paying industries are misclassified as independent contractors, representing about 10% of the state’s total workforce (Center for New York City Affairs, 2023). 

In California, the Employment Development Department (EDD) identified approximately 158,000 misclassified workers through audits and inspections in 2022 (California Employment Development Department, 2022). 

Sham Labor Unions 

Another poor practice identified in the cannabis industry is that some operators have been accused of creating their own, or engaging with non-legitimate labor organizations to fulfill Labor Peace Agreement (LPA) requirements, potentially to avoid genuine union negotiations (MJBIZDaily, 2024). Several states – California, New York, New Jersey, Virginia, Connecticut, and Oregon require cannabis businesses that

exceed a specific headcount threshold to enter into LPAs as a condition for obtaining or renewing their licenses. Attempting to circumvent the LPA requirements can jeopardize the risk of losing licensing. 

Utilizing a temporary labor contractor can effectively mitigate the risks of overspending on payroll, employee misclassification, and costly LPAs. By relying on the trained staff provided by an FLC, operators can achieve substantial cost savings, as the FLC typically assumes responsibility for overhead costs related to hiring, training, payroll, taxes, and insurance. 

Benefits & Risks of Using Labor Contractors 

1. Cost-Saving Benefit: Outsourcing labor management to a contractor frees up time and resources that can be reinvested into growing your business. Using a licensed farm labor contractor comes with predictable labor costs, potential for process experts, and reduced risk related to non-compliance. 
2. Streamlined Operations: Managing labor in-house can be time-consuming. FLCs handle the hiring process, manage payroll, and ensure all workers have the proper training and documentation so you can focus on core business operations—cultivating and selling high-quality products. 
3. Risks of Using Unregistered Seasonal Labor. The long-term financial consequences of using unlicensed labor far outweigh any short-term savings. The MSPA explicitly recognizes joint employment, especially when operators use FLCs. 

The farm and the FLC can be jointly responsible for unpaid wages, labor law violations, and noncompliance with worker protections. Even if the FLC is registered, the farm must ensure compliance with face liability and potential costly litigation. 

4. Risk of Penalties: State labor boards and cannabis regulatory bodies actively audit and investigate businesses for compliance violations. Penalties for providing unlicensed labor can quickly drain resources. Cannabis operators are particularly vulnerable to the penalty of having their licenses revoked or suspended for non-compliance. 

Finding an FLC or Checking A License Status 

It’s important to complete your due diligence when choosing a labor contractor. Things you should do: 

1. Ask for Proof of Registration: A reputable FLC will not hesitate to provide proof and furnish their Orange & Blue Federal registration cards. If they refuse, that’s a red flag! 
2. Database Check. The federal database (and your states) have easy tools to check active or revoked status. U.S. Department of Labor FLC Registration Search:
3. Check your state licensing requirements. Most states’ Labor Departments maintain a publicly available database of licensed FLCs. 
4. Contact local Farm Labor Contractor associations in your state for reputable referrals. 

In the fast-growing cannabis industry, using a licensed farm labor contractor can save you money, protect your business from legal risks, and streamline operations. By verifying a staffing agency’s licensing status and working with professionals who prioritize compliance, you can set your cannabis operation up for sustainable, long-term success.

Want to learn more? Then don’t miss the upcoming webinar “Committee Insights: The Grower’s Guide to Contract Labor, Compliance, and Cultivation Workforce Safety”. Arabella will be joined by other members of NCIA’s Cultivation Committee to unpack the legal, financial, and operational considerations around FLCs and share strategies to protect your team and bottom line. Register online here.