Directors and Officers need to be Properly Covered
Today in the cannabis industry there is increasing attention to Directors and Officers (D&O) exposure. As the threat of litigation from shareholders and activist groups grows, D&O is becoming more expensive, with more restricted coverage.
Paired with the significant distraction to business leaders, the bottom line risk of increasingly diverse, poorly regulated product offerings will significantly shape the current risk management reality across the industry.
There are significant challenges in the market concerning the availability, cost, and expected retention for D&O coverage in the cannabis industry – especially for those businesses whose markets cross multiple countries. Therefore, a full D&O review is included in our assessment and recommendations for clients’ risk management and insurance program.