Directors & Officers Insurance, also known as D&O Insurance, is a type cannabis insurance coverage that provides protection for the board members, officers and directors of your company or organization from lawsuits that can arise from them performing their duties.
Providing Cannabis Directors & Officers Insurance for the cannabis supply chain:
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Cultivation – Indoor, Greenhouse & Outdoor
Third-Party Processors & Harvesters Infused Product Manufacturers Laboratories & Testing |
Wholesalers & Distributors
Manufacturers of Goods and Equipment Dispensaries & Retail Operations Transportation & Delivery Landlords |
Do you need Cannabis D&O Insurance?
Cannabis D&O liability is becoming more the rule than the exception with cannabis businesses and organizations. This type of coverage protects the assets of your company and the personal assets of the individuals who are directors and officers of the organization.
The coverage will reimburse the company for amounts paid to Directors & Officers for expenses incurred as a result of claims made against them for wrongful acts and to which they are entitled by the company’s bylaws. Exclusions on this type of coverage would include illegal personal profit, illegal securities transactions, & deliberate dishonesty.
Common activities leading to Directors & Officers claims might include:
The coverage will reimburse the company for amounts paid to Directors & Officers for expenses incurred as a result of claims made against them for wrongful acts and to which they are entitled by the company’s bylaws. Exclusions on this type of coverage would include illegal personal profit, illegal securities transactions, & deliberate dishonesty.
Common activities leading to Directors & Officers claims might include:
- Acquisitions. mergers, management buy-outs, sale of corporate assets
- Foreign investment
- Breach of contract
- Waste or mismanagement of corporate assets
- Bankruptcy or liquidation of the company
- Changes in ownership
- Employment practices which would include termination, discrimination, harassment
- Defamation, libel, or slander
- Misrepresentation & nondisclosure
- Breach of duty care
- Unpaid wages
- Withholding of taxes
Cannabis D&O Insurance Costs
Cannabis D&O Insurance costs are based on a number of factors which include:
Reach out to me if you’re considering cannabis business insurance. I will discuss with you how Directors & Officers Insurance works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Cannabis D&O Insurance quotes from multiple insurance carriers so you can get the best possible rate.
As an insurance broker I help Cannabis businesses manage risk through insurance.
- Ownership structure
- Public company
- Private company
- Not-for-profit organization
- Type of business
- Business experience
- Financial condition
- Current ratio: compares an organisation’s assets and liabilities to measure its ability to pay its debts
- Debt-to-equity ratio: displays the proportion of shareholder equity and debt used to fund an organisation’s assets
- Interest cover ratio: determines how easily an organisation can pay the interest on its outstanding debts
- Profit margin: compares net profit against overall revenue to express an organisation’s operating profitability
- Quality of management
- Limits chosen
- Loss history
Reach out to me if you’re considering cannabis business insurance. I will discuss with you how Directors & Officers Insurance works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Cannabis D&O Insurance quotes from multiple insurance carriers so you can get the best possible rate.
As an insurance broker I help Cannabis businesses manage risk through insurance.