insurance cannabis industry

Insurance Industry has New Loss Control Measures to Evaluate Risk and Insure the Cannabis Industry

CS Compliance Systems (www.cscomply.com), developers of CannaScore (www.cannascore.net) – the world’s first real-time regulatory compliance auditing program for the cannabis industry, has developed insurance loss control measures for the cannabis industry.

The International Risk Management Institute defines loss control as a risk management technique that seeks to reduce the possibility that a loss will occur and/or reduce the severity of those that do occur.

Unfortunately, from an insurance perspective, the cannabis industry is not mature enough to identify all of the types of potential losses that a Cannabis Related Business (CRB) might experience.

One could assume that cannabis operations share the same risks as agriculture, food manufacturing or retail operations. However, there are nuances making it difficult for underwriters to make informed decisions about CRB insurability. Accordingly, only Surplus or Excess lines insurance companies are willing to provide coverages that most businesses could obtain from a standard insurance company. Thus, CRBs have much higher insurance costs and limited availability.

A major stumbling block for wider insurance industry acceptance is compliance with state and local regulations. Such regulations are complex and change frequently. One company that is helping CRBs assess their regulatory compliance is CannaScore®.

CannaScore® is an easy-to-use, software-as-a-service (SaaS) tool, that helps CRBs conduct automated compliance audits to ensure they operate within state and local regulations. CannaScore provides mechanisms for CRBs to prove — on an ongoing basis — that they are in compliance with state and local regulations, while demonstrating service-worthiness to insurance companies, banks, law firms, landlords, and the like, via independent audit reports, self-audits, and weighted compliance scoring (like a FICO® score).

An article on this subject was recently published in www.cannanews.buzz.

To read the full version, visit: goo.gl/nszFdu

For information on CannaScore, visit: www.cannascore.net or call: 720-890-7344.

 

About CS Compliance Systems, LLC:

CS Compliance Systems developed CannaScore – an award winning system providing real-time compliance auditing, scoring and analysis configured to state and local regulations, examining a wide range of vital business functions. Verified companies receive compliance certifications and scores, giving assurance to regulators, stakeholders, banks, and company management.

CannaScore was awarded the Cannabis Industry Technology of the Year Award.

 

Connect with us:

Facebook: Facebook.com/cannascore

Twitter: twitter.com/cannascore

Website: www.cscomply.com

Advertisements