Director and Officer Insurance for Cannabis Businesses

What is Director & Officer Insurance?

Directors and Officers (D&O) coverage was created to protect directors, officers, and spouses for actual or alleged wrongful acts in managing a company.  As a director/office/board member of a company your personal assets are vulnerable if a claim is filed against the board.  Typical claims can allege directors/officers of activities such as: Fraud, failure to comply with laws, failure in your fiduciary duties that lead to bankruptcy or financial loss, misrepresentation of corporate assets, theft of intellectual property, breach of contract, and unfair business practices.

D&O claims can come from competitors, investors, customers, employees, or other parties.  In the case your company is sued for a D&O issue your policy can protect both the individual directors and officers as well as the company itself.  In the case of bankruptcy, carriers may waive a portion or the entire deductible.  Standard D&O coverage will cover settlements, legal fees, and other claim costs after a deductible has been paid.

When should I consider purchasing Director & Officer Insurance?


Privately held companies with boards/advisory committees, publicly traded companies, and non-profits should speak with their insurance professional about D&O coverage and see when investing in D&O insurance fits their timeline.

If you choose to volunteer on a non-profit board Cannabis Connect strongly recommends you ask to see a copy of their D&O insurance.  Even volunteering for a non-profit can open your personal assets up to losses with D&O claims!

Tips for Choosing D&O Insurance Coverage


 Reading the terms of the policy with your broker is the first step to finding the right coverage for you.  You’ll want to ensure your policy covers advisory committees if you have them, particular wording on board makeup, and review the exclusions to keep you from choosing the wrong policy. 

Your broker can help you negotiate terms with the carrier and break down which exclusions apply and how they apply to each claim.

Additional Questions?

 There are lots of caveats with D&O coverage and the best way to learn more is to give us a call and we’ll be happy to help answer your questions.  Cannabis Connect insurance has been helping private, public, and non-profit entities with D&O coverage for years.  

Get a Director and Officer Insurance Quote

Protect yourself and your business by reaching out to Cannabis Connect Insurance, so we can help you find the right policy for your business.

Our Partnerships


Builder’s Risk, Excess Liability Rates Climbing Fast

INSURANCE RATES are rising rapidly for contractors, particularly for builder’s risk and excess liability policies as the cost of claims continues to increase dramatically.While rates for builder’s risk have been averaging 10 to 20%, pricing for excess liability and...

Fudging Payroll Records Can Lead to Fines, Jail

THE OWNERS of a California flooring installation company allegedly underreported their payroll amounts to workers’ compensation insurers to the tune of $30 million. The men are each facing three felony charges. These are the potential consequences for those who...

New Rules Relax COVID-19 Emergency Standard

CAL/OSHA LAST November issued COVID-19 emergency temporary standards, and now the agency has revised those standards to reflect the reduced risk of infection as more people get vaccinated. The revisions provide respite to many businesses ahead of the planned reopening...

As Workplaces Open, Experts Fear Lawsuit Tsunami

AS MORE Americans return to the workplace, employers are now facedwith the difficult issue of transitioning reluctant staff back as well as complaints and legal action from the most reluctant of workers. Already some returning workers have started to sue their...

Department of Labor Backtracks on New Regulation

PRESIDENT BIDEN’S Labor Department has rescinded a Trump-era rule that would have made it easier for businesses to classify workers as independent contractors instead of employees under the federal Fair Labor Standards Act. In the last month of the Trump...

Bureau Files 2.7% Rate Increase for Sept. 1

THE WORKERS’ Compensation Insurance Rating Bureau of California has recommended that benchmark workers’ comp rates be increased by an average of 2.7%, for policies incepting on or after Sept. 1. The recommendation has been sent to Insurance Commissioner Ricardo Lara,...