From Lapse to Coverage: How Kickstand Helped a Cannabis Company Secure a Multistate Workers' Comp Policy
By providing personalized human review, Kickstand Insurance helped a cannabis wholesaler with employees in 27 states, secure workers’ comp after an automated quote failed them.
The Challenge: A Computer-Generated Error Leads to Lapse
The cannabis company’s insurance challenges began with a computer-generated quote that failed to recognize their operations as cannabis-related. Initially, the policy seemed fine, but during a mid-policy audit, a human reviewer flagged the oversight. The insurance company immediately canceled the policy, leaving the uninsured for months.
This lapse caused significant problems. A coverage lapse is a major red flag for many carriers, making them hesitant to quote new policies. On top of that, the company’s multistate workforce and cannabis industry operations added layers of complexity that many insurance companies were unwilling to handle.
After being declined by seven carriers, they turned to Kickstand Insurance for help.
The Solution: Experience and Connections
Kickstand Insurance used its deep industry experience and connections to solve this complex insurance challenge.
- Overcoming a Year-Long Lapse
The company faced a major hurdle: securing workers' compensation insurance after being uninsured for a year—a dealbreaker for most carriers. Leveraging its relationships and deep knowledge of the industry, Kickstand identified a carrier willing to take on the challenge. - Finding the Right Partner
Kickstand connected them with a carrier comfortable insuring cannabis operations—an industry many carriers are reluctant to serve. - Securing Multistate Coverage
Despite the complexity of a premium spread thin across multiple states, Kickstand worked with the carrier to craft a multistate policy that fit their needs.
These efforts helped them get the coverage they needed, proving that with the right expertise and connections, even the most daunting challenges can be solved.
The Results: Comprehensive Coverage Secured
Kickstand Insurance successfully secured a $108,000 multistate workers’ comp policy. The policy provided full protection for their multimillion dollar payroll, ensuring compliance and coverage across their North Carolina warehouse and 27 states with remote employees.
The Takeaway
When it comes to workers’ comp insurance, don’t settle for automated quotes alone. Use a company that ensures every quote is reviewed by a human agent. Human review catches the critical details that algorithms often miss, like proper classifications, accurate payroll numbers, and potential red flags.
The right combination of technology and human expertise means you’ll get a policy that’s tailored to your needs—without costly surprises later.
Snapshot
- Industry: Cannabis Wholesaler
- State: North Carolina (with operations in 27 states)
- Payroll: $8 million
- Challenge: Coverage canceled due to a computer-generated error, leaving the business uninsured for months.
- Kickstand Solution: Human review corrected the error and secured a comprehensive $108,000 multistate policy.
- Key Takeaway: Don’t rely on computer generated quotes. Make sure you have a knowledgeable agent double check everything.
Is your Insurance Agency checking for these Common Errors?
Make sure your policy is reviewed by a human before being bound—or you could end up paying the difference or losing your coverage entirely.
Here are the questions a human expert might ask:
🗹 Do the business details match your operations?
Misleading or incomplete descriptions can result in a policy that doesn’t fit your needs.
🗹 Are payroll numbers accurate and verified?
Errors in payroll reporting can inflate costs or leave you underinsured.
🗹 Are owners being double-counted?
Automated systems often make this mistake, leading to unfairly high premiums.
🗹 Are employees classified correctly?
Classifying employees requires nuance—an expert can ensure roles are optimized, sometimes splitting classifications creatively to save money.
🗹 Are there data entry mistakes?
Even small errors can cause major problems during audits.
Experience the Kickstand Difference
Make sure your policy is reviewed by a human before an audit—or you could end up paying the difference or losing your coverage entirely.
Every computer-driven quote at Kickstand Insurance undergoes expert review before it's finalized. This ensures your policy is accurate, tailored to your needs, and free of costly surprises at audit time.
Start your online quote today—and get it reviewed by an expert. Let us help you secure the coverage you need with confidence.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
