Global reinsurance brokerage Hub International Limited has chosen Simplifya, a provider of operational and regulatory compliance software for the cannabis industry, to provide ongoing cannabis license verification in order to help Hub identify and support valid cannabis operators with insurance coverage.
Licensing for cannabis businesses can be complicated. Compliance requirements vary from state to state, and by the type of business and the physical location of the operation. Licensing also requires proper due diligence in order for cannabis businesses to operate legally and maintain compliance.
“Proof of insurance shows operational maturity and is an essential step for cannabis cultivators, manufacturers, transporters and distributors to keep growing their businesses,” said Jay Virdi, chief sales officer for Hub International’s cannabis specialty practice. “With Simplifya, Hub can more efficiently protect legitimate cannabis operators by ensuring their licensures are complete, valid, and active – all of which are non-negotiable necessities for securing proper insurance coverage.”
Hub’s cannabis specialty has more than 130 members serving more than 400 cannabis-related medical and recreational clients, the company said. Hub clients include companies throughout North America and across the cannabis spectrum, including cultivating and harvesting, transportation, retail and dispensaries, manufacturing, and laboratories, as well as wholesale and distribution centers.
The Simplifya Verified platform monitors real-time cannabis licensure for 34 states, Washington, D.C., Puerto Rico, and all Canadian provinces. Each of those jurisdictions makes cannabis license information available, but the format in which they provide it differs, making manual monitoring time- and labor-intensive, Hub said.
“One of the major hurdles still facing the cannabis industry is understanding exactly with whom you are doing business or, in the case of Hub, what type of cannabis business they are helping to secure insurance,” said Marion Mariathasan, co-founder and CEO of Simplifya. “Simplifya Verified provides companies with a much-needed risk management tool in order to be able to confidently invest in and provide services to legitimate, licensed cannabis operators.”