Essential Elements of a Cannabis Security Plan

In an industry where you offer products with high street value that are easily resalable, where you're legally required to prevent these products from falling into the wrong hands (especially for unauthorized access or consumption), and where you're often forced to physically handle huge volumes of cash, the question isn't if you need a cannabis security plan, but how robust is yours?

Effective security is essential for every cannabis business. You need to guarantee the safety of your assets, employees, and customers while ensuring your operations comply with strict regulations. And all of this starts with a comprehensive plan.

Whether you run a dispensary or are a part of its security team, this guide is for you. We'll walk you through the essential elements to build a solid cannabis security plan, covering everything from crucial physical safeguards and smart operational protocols to advanced technological solutions to help you solidify your defenses. Read on! 

Why Cannabis Businesses Need a Robust Security Plan

Have you ever wondered why a robust security plan is non-negotiable for your business? Well, it's what keeps your products, your place, your team, and your customers safe. And let's not forget that it's a fundamental part of cannabis regulations and a must-have for licensing. We'll get into all these "whys" below!

Understanding Security Risks in the Cannabis Industry

You can face different threats when operating in this sector, and they can emerge from different angles. That's why you should make your cannabis facility's security a top priority.

Being both high-value and less accessible than other goods, cannabis products are a magnet for those who just want a quick buck.

On top of that, the federal prohibition on marijuana limits your access to conventional banking. Therefore, you generally cannot accept payments from credit or debit cards, checks, standard wire transfers, third-party digital wallets, or Peer-to-Peer (P2P) apps. This means your business likely relies on cash transactions. 

Stories about cannabis companies' cash-heavy operations often hit the media, which can make you particularly vulnerable to criminal acts.

External theft, such as robberies and burglaries, is probably your first thought, but external threats aren't the only concern. Internal theft, like an employee diverting products or pocketing cash, can be just as damaging, if not more so, because it often goes undetected for longer periods. You also need to consider risks like vandalism, cyberattacks on your systems, and even fraud or embezzlement.

Aside from the general security concerns, you must understand the specific methods criminals employ. Most of the break-ins that happen in our industry are classified as "smash-and-grabs" or "crash-and-grabs. 

In 2021, for example, a TikTok trend led to a massive surge in Kia and Hyundai thefts. Many criminals started using such easily stolen vehicles in these incidents, ramming them into dispensaries to gain entry. Similar attacks have been reported in almost every state where cannabis is legal, including Washington, Nevada, California, Colorado, and Montana.

Recognizing these threats, the American National Standards Institute (ANSI) has approved a new Cannabis Security Standard in 2024. Developed by ASIS International, it offers invaluable guidance on physical protection systems, crime prevention through environmental design (CPTED), site hardening, and physical barriers—all of which are vital for deterring such crimes.

Regulatory Compliance and Security Requirements

You need to maintain regulatory compliance for cannabis security, not just to protect your investment and hard work, but because it's mandatory. 

Many states that have legalized cannabis, whether for medical or recreational use, enforce rigorous dispensary security requirements. In fact, some even demand detailed security plans as an integral part of the licensing application process.

These security plans are crucial for your entire operation, extending beyond just initial licensing. Most states require their continuous implementation and meticulous maintenance throughout your business's lifespan.

But what security measures are required for cannabis businesses? While specific security requirements can vary by state or even by local jurisdiction, you'll find common elements across the board. For example, almost all of them demand 24/7 video surveillance with high-resolution cameras, sophisticated electronic access control systems for restricted areas, and robust fire and burglar alarm systems. Moreover, you'll often need to adhere to strict transportation protocols, use state-mandated seed-to-sale tracking platforms, and have on-site security personnel. 

Key Components of an Effective Cannabis Security Plan

Now that you understand its importance, let's dive into the core: what are the key components of a cannabis security plan that you absolutely need? Overall, these include robust perimeter defenses, stringent facility access control, comprehensive video surveillance, reliable alarm systems with monitoring, secure product and inventory management, safe cash handling protocols, and thorough emergency response planning. Find more information about each one below. 

Perimeter Security Measures

Think of your cannabis dispensary's security like a fortress, building your defenses from the outside in. That means you need to create a secure perimeter as your very first line of defense. 

Outdoor surveillance cameras are indispensable for this. You can achieve full perimeter coverage by strategically positioning them around your store, capturing every angle, including all entry and exit points.

Another important aspect of the perimeter will be the fence surrounding your dispensary. Whether you opt for aluminum, chain-link, or wood, fencing should be high and sturdy, featuring carefully controlled access points. This will help you identify who's trying to enter and make it clear to intruders that they're not welcome.

You'll also need to illuminate your entire exterior, particularly around entrances and any potential blind spots. High-intensity discharge (HID) and motion-activated lights are some of the brightest and most effective options for outdoor use. The former will light up a large portion of the space, while the latter will trigger on whenever movement is detected.

Parking lot and wall pack lights are also essential for illuminating key areas like entire parking structures, entrances, exits, and garages.

Facility Access Control Systems

Who gets in and out of your store? And when? You should define how you'll manage access as part of your cannabis dispensary's security strategy. 

There are different access control systems, including traditional key cards, fobs, biometrics (fingerprint, facial, and iris scans), PIN codes, and keypads. You can use a single method or even combine them, employing multi-factor authentication (a key card plus a PIN, for example), for a multi-layered approach to deciding who can enter specific areas, when, and under what conditions.

For effective physical access control, all visitors—including vendors, providers, and regulators—should sign in and out, show valid identification, and get a temporary access badge at the primary point of entry to your dispensary. Doing this with a paper-based method is possible; however, electronic management systems can streamline the process by eliminating the need for handwritten logs, providing real-time monitoring of who is on-site, and creating a searchable digital record. Just keep in mind that you might need to escort them, or even restrict their access entirely, in sensitive areas.

Finally, remember that not every employee needs to access every part of your facility, so you should establish clear access levels for your staff based on each person's job function and what their role requires. If it makes sense, you can also add time restrictions like only letting someone into a specific area during work hours.

Video Surveillance Requirements and Best Practices

Besides creating the perimeter, surveillance cameras will be your eyes when you're not in your dispensary, and even when you are, helping you keep track of what's happening inside.

The market is full of different types of cameras—and you need to choose yours according to your needs, objectives, and budget—but you should opt for a surveillance system that meets the following characteristics:

• Provide the highest possible resolution (1080p minimum, 4K is better) to pick up even the smallest details from a distance.
• Operate around the clock, without interruptions, and have long-range infrared night vision to capture images even in complete darkness.
• Feature robust construction with impact-resistant housings and domes to resist physical attacks, tampering, and environmental challenges.
• Allow you to monitor live and recorded video from anywhere, anytime, through secure web or mobile access.
• Offer secure on-site, cloud, or hybrid storage options, with sufficient capacity, to ensure protection against data loss.

You should place these cameras at all entry points and other key areas, such as those where you store cannabis, make sales, or handle cash, identifying and covering all potential blind spots.

It's also important that your devices have enough storage to meet regulatory retention periods, which typically mandate 30 to 90 days of stored footage. Once installed and running, make sure your cameras are continually monitored, either in-house or through a third-party security company, so you can quickly respond to any incidents.

Alarm Systems and Monitoring

Just as cameras are your eyes, alarms are your ears and can quickly alert you when something is wrong. But you need more than a generic solution.

Your alarm system should have intrusion detection capabilities that are tailored to your dispensary's unique layout, so it can notify you if someone breaks in or tries to do so when you're not there.

Glass break detectors, whether acoustic or shock detectors, can catch the frequency or vibration of breaking glass and inform you if your doors or windows have been compromised. Other devices can also detect the heat or energy a person's body emits when moving within their range, alerting you of any unauthorized activity within your dispensary. So, both of them may be great additions, too.

Ideally, you, your team, or a third-party service provider should monitor your alarm systems 24/7, ensuring that any potential intruders are instantly detected and emergency services can be dispatched without delay.

In addition, you should secure each entry point. At the very least, you'll want alarms on all doors. Some states even require dispensaries to have smash alarms on windows.

This will depend on your state's regulations, but you might need to install panic buttons or silent alarms at key points, especially at cash registers and in secure rooms. These enable you or your staff to trigger an immediate alert when needed without making any sound or visual sign. Although not mandatory, these solutions prove very useful in critical situations, as they allow you to discreetly emit a signal that goes directly to professional monitoring services providers, who can then request assistance from authorities.

Keep in mind that some advanced systems offer more than just detection and can be managed remotely, integrate with other security solutions or access control tools, and even use AI to identify potential threats.

Last but not least, you should establish clear response protocols with your monitoring service and train your staff on what to do when an alarm is triggered.

Product Security and Inventory Control

Protecting your products should be at the core of your security plan, not just from external threats but from internal ones, too. It all starts with storage. Where do you keep your cannabis goods while they're not being actively sold or processed?

You have various storage solutions at your disposal, depending on the volume and type of product. Generally speaking, for high-value items and bulk inventory, you'll need reinforced vaults, cabinets, or safes. The rest of your products can go into secure display cases with robust locks.

Just remember that your state's regulations may be slightly different and have different storage requirements. Moreover, some products like concentrates and edibles must be stored in areas with specific temperature or humidity controls and may require specialized solutions to prevent spoilage and potency loss.

For effective cannabis theft prevention, you need to accurately track your inventory and reconcile it regularly (every single day, if possible). This means you should:

• Use cannabis inventory management software to track every single gram, plant, or product unit that arrives at your dispensary, so you know exactly what you have and where it is.
• Compare your physical inventory against your tracking records to immediately identify any discrepancies or issues.

Besides rigorous inventory tracking and daily reconciliation, you should establish robust internal records, meticulously document a clear chain of custody for every item, and foster accountability throughout every stage of product movement to fully safeguard your valuable assets.

Cash Handling Security Procedures

While some community banks and credit unions offer financial products and services to cannabis businesses, national banking institutions are hesitant to serve our industry due to federal illegality.

The problem is that the classification of cannabis as a Schedule I controlled substance creates a significant conflict for banks, as handling money derived from federally illegal activities could expose them to charges of money laundering or other federal penalties. 

If you have little to no access to banking products or services, how do you handle the money from your dispensary sales? The most common way is through cash payments. Unfortunately, this reliance on physical currency often comes with significant security risks, such as theft or robbery, and even the potential for counterfeit currency. That's why proper cash handling is a critical component of the required security measures for cannabis businesses.  

In other words, you need to establish clear and comprehensive protocols for handling cash, from initial receipt to deposit, starting with one important question: Where will you keep the money? Safes are the best options for storing cash both during business hours and overnight when no one is at your dispensary, especially heavy-duty, bolted-down safes that are rated for burglary and fire protection.

Drop safes, also known as "depositories" or "deposit safes," may also come in handy, as they allow you to quickly deposit cash through a slot or drawer without having to open the main door, preventing unauthorized access to your money.

Additionally, you should establish cash limits at your registers that allow you to have some cash on hand to make change for customers while minimizing exposure during operating hours. Any excess cash should be moved to a secure safe.

Security is also essential in transportation. Do you need to move cash from your dispensary to your bank or a secure location? Never transport large sums of cash in personal vehicles. Instead, consider using armored car services to reduce the risk of a robbery during transit.

Emergency Response Planning

Even if you take every possible step to boost your cannabis dispensary's security, emergencies can happen, and everyone working in your store should know how to respond to these situations.

You need clear, actionable protocols for different potential incidents, including those that seem unlikely. Think about the following:

• Break-ins: Who gets called if an alarm triggers after business hours? What is the proper procedure when this happens?
• Armed robberies: What should your staff do if a robbery occurs? How can your team communicate with authorities? Are there panic buttons, and when should they be pressed? What information should be gathered for law enforcement?
• Natural disasters: How do you secure your facilities and products during a hurricane, earthquake, or flood? Does your staff know what to do and avoid in these scenarios? Do you have plans for evacuations? Where are your dispensary's emergency exits?

For these and other situations, such as fires or even medical emergencies, it all comes down to establishing clear protocols and training your staff. Your employees should know these plans inside and out. You can even conduct drills for different scenarios to ensure they're well-prepared and can react calmly and effectively under pressure.

Keep in mind that a comprehensive cannabis security plan with well-rehearsed emergency responses can save lives and minimize your losses!

Implementing Effective Staff Security Training

Your system is only as good as the people operating it. So, proper staff training for dispensary security is just as important as the technology you use and the protocols you set. Here's what you should focus on:

Security Awareness Training

Every employee plays a key role in your overall security. You must educate your entire staff about the common threats, both internal and external, to which your dispensary may be exposed, how to identify them, and how and to whom to report anything that seems off, no matter how small.

It's important that your employees know their roles and understand that security is everyone's responsibility, not just the security guard's.

Emergency Response Training

If you want your security measures to work, you need to practice. Remember that practice makes perfect.

As mentioned, you can conduct regular drills for various scenarios, such as mock robberies or evacuations, teaching your staff how to secure their safety, how to activate panic buttons, or what information to observe and report. Role-playing them can be a good idea!

Your employees should know evacuation routes or emergency exits and how to account for everyone during crises. Also, at least some people on your team should be trained in basic first aid.

It's highly recommended that you always provide initial training to new hires and regular refresher courses on a regular basis, preferably quarterly or biannually, to ensure everyone understands new threats or protocols.

Compliance Training

When performing staff training for cannabis security, you should also think about compliance. All of your employees should understand the specific regulations that apply to their roles in your dispensary's security and know how to maintain accurate records for all related activities, including visitor logs, surveillance footage access history, and incident reports.

Additionally, as mentioned, your staff should be trained on how to report security incidents to management and, subsequently, how management reports incidents to regulatory bodies and law enforcement. This ensures your team responds appropriately to all security breaches and your business remains compliant.

Creating Your Cannabis Security Plan: Step-by-Step Guide

After reading this, you're probably asking, "How do I create a security plan for my cannabis dispensary?" Essentially, you need to identify your vulnerabilities, define clear protocols and procedures, write your document (we recommend using a template!), check off all essential elements on a checklist, and set your budget. We'll walk you through each step below!

Conducting a Security Risk Assessment

Before you start looking for technology or drafting your plan, you need to assess your vulnerabilities. First, focus on understanding what you're protecting (products, cash, data, or people) and who might want them (thieves, disgruntled employees, or cyber attackers).

Next, identify the weaknesses in your dispensary. Walk through your store with fresh eyes, trying to find weak points, like poor lighting or problems with your doors or fences, and assessing location-specific risks.

Don't let mistakes pass through your procedures, especially those that have to do with cash handling, product storage, and emergency response. Evaluate your current protocols and identify errors that can quickly become potential threats.

To facilitate this process, you can use this short but practical risk assessment checklist:

• Are all external doors and windows secure?
• Are there any dark spots around the building?
• Do you strictly control entry to all secure areas?
• Do you meticulously track your cannabis inventory?
• Are cash handling procedures clear and easy to follow?
• Are staff trained on emergency protocols?
• Is your dispensary in a high-crime area?
• Is your storefront secluded or highly visible?

All of these factors influence the level and type of security measures you'll need.

Documenting Security Policies and Procedures

You need more than a mental checklist—all your policies must be clearly documented, including everything from protocols for opening and closing your store to inventory reconciliation processes and emergency response plans.

Besides making it easier for your staff to follow guidelines, writing your security measures on paper is key to demonstrating to authorities that you have a well-thought-out strategy to protect your dispensary and that you comply with all applicable regulations.

You need to compile all your procedures into a comprehensive security manual, which should be written in easy-to-understand language. Plus, it's crucial that you review and update your policies annually or after any incident.

Security Plan Template and Checklist

You don't have to do everything from scratch. Actually, using a security plan template for dispensaries can be a good starting point, save you time, and help you make sure you don't miss anything important. Just fill it out and tailor it to your specific needs.

When choosing your template, see if it has all the essential elements we discussed above. Once you fill it out, you can use a detailed cannabis security checklist derived from your plan to verify that you've covered all the necessary points or even conduct daily or weekly checks.

Budgeting for Security Implementation

Finally, you must set a budget. Security costs money, but you should view it as an investment. Remember that this will help you protect your assets and avoid costly losses.

Be realistic when calculating costs. Basic surveillance systems can cost as little as a few thousand dollars, but professional-grade cameras, robust access control systems, and secure safes aren't cheap, and you need them if you want to improve your cannabis dispensary's security. Also, you should factor in additional fees for installation, monitoring, and ongoing maintenance.

If you're on a tight budget, you need to prioritize. Start with the highest-risk areas and the most critical compliance requirements.

Maintaining Regulatory Compliance

Is your cannabis security plan complete? That's great! However, this isn't a one-and-done thing, but an ongoing process. Don't just write this manual and tuck it away—you must ensure it's properly implemented.

This brings us to another question you likely have in mind: "How can I ensure compliance with cannabis security regulations?" It all comes down to understanding the rules, keeping accurate records, conducting internal audits, and preparing for inspections.

Below is more information on how to maintain ongoing regulatory compliance for cannabis security!

State-Specific Security Requirements

As we explained above, each state has its own unique regulations regarding cannabis dispensary security. Therefore, you need to familiarize yourself with the ones that apply specifically to yours.

For example, some states like California, known for its strict security requirements, require 90-day surveillance footage retention, while others might only require 30. And one state may mandate that different product types be kept in separate vaults or that dispensaries have 24/7 on-site security guards, while another might not.

Always consult your state's cannabis regulatory agency or get in touch with a legal counsel specializing in cannabis law to ensure you have the most up-to-date information.

Documentation and Record-Keeping

In the eyes of regulators, if something wasn't documented, it didn't happen. That's why you need to keep detailed records of any security incidents, even minor ones. These documents can help you prove that you've taken all necessary measures to protect your dispensary and that it complies with all applicable requirements.

Overall, these are some of the records you should keep:

• Incident reports
• Visitor logs
• Surveillance footage
• Alarm system activity
• Maintenance records (for security equipment)
• Staff training records

Most states also have specific retention periods for these records. Do your research to find out the rules that apply to your business and, if possible, use cannabis compliance software to store and retrieve these documents when necessary.

Security Audits and Inspections

Do you want to know if your cannabis security plan is robust enough and properly implemented in your dispensary? Regular checks can help you assess your protocols and identify weaknesses before regulators do so.

For instance, you can review your surveillance footage and test your alarm systems to see if they're working as they should or conduct mock emergency drills to evaluate how staff respond to certain situations. Internal audits are great opportunities for improvement.

It's also necessary to prepare for regulatory inspections, which may be unannounced. Your dispensary should always be audit-ready, which means all your security systems should be fully operational and your staff should be able to answer any questions about your protocols.

Plus, don't forget to ensure all your documentation is up-to-date and easily accessible.

Best Practices for Cannabis Facility Security

We already know how to create a detailed plan and maintain ongoing compliance, but what are the best practices for cannabis facility security? Is there anything that really makes a difference? 

Some of the most impactful strategies include adopting a layered security approach, consistently reviewing and updating your safeguards, forging strong partnerships with security professionals, and implementing robust cybersecurity measures. Let's go over each one to help you elevate your defenses and protect your dispensary.

Layered Security Approach

Having many layers of defense is more effective than focusing on a single point. If one layer fails, another is there to back it up.

For example, let's say an intruder manages to jump over your fence (outer layer) and enter your dispensary. If you have a powerful alarm system (middle layer) and rely on robust storage solutions (inner layer), you'll be notified of an intrusion in time, and the individual won't even be able to steal your products because they'll be well protected.

All your security measures work together. A single point of failure can be easily exploited, but multiple layers of protection give you more time for detection and response.

Regular Security Reviews and Updates

Security threats also evolve. New technologies emerge and crime trends change all the time. In addition, your business can grow and become more attractive to criminals. Therefore, you must ensure your systems and protocols are still adequate today.

Review your solutions and guidelines, and if you realize they're insufficient now, update them as soon as possible, considering your changing needs and adapting them to the current environment.

Working with Security Professionals

Security is a complex field, so don't force yourself to do all this alone. Many security consultants serve our industry and can help you design a cannabis security plan or review the one you created to see if it's compliant.

If you have a large operation, you can also look for a dedicated security firm. These companies understand the risks your cannabis business is exposed to and provide comprehensive solutions, sometimes including monitoring, armored transport, and on-site guards.

Cybersecurity for Cannabis Businesses

You shouldn't just work on your physical safeguards. In today's digital age, you also need cybersecurity. From customer and patient personal information to your financial records, you handle sensitive data that can become an attractive target for cybercriminals.

How can you protect your dispensary from these threats? You should implement a robust cybersecurity system, encompassing proven solutions like strong encryption and multi-factor authentication. Your employees must also be properly trained on this matter, and you must conduct regular system updates to make sure all sensitive data is protected.

Beyond Protection: The Importance of a Cannabis Security Plan

A well-thought-out cannabis security plan may be a compliance requirement in many states, but its importance extends beyond that—it's a fundamental part of running a successful business.

Creating one might seem like a lot. You have to assess your vulnerabilities, research regulations, purchase new technology, train your staff, and more. But, trust us, getting your cannabis security plan right will pay off!

Are you ready to fortify your defenses and ensure your cannabis dispensary is well protected? Implement the recommendations we gave you above! And for better results, pair your security strategy with powerful software like Distru that supports your operations, inventory management, and compliance efforts. Schedule a demo today to learn more about our solution! 

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