What is directors and officers (D&O) insurance, and do cannabis businesses need it?
AlphaRoot Team
D&O insurance is crucial for cannabis businesses to protect the personal assets of their directors and officers against claims made as a result of the decisions and actions they take within the scope of their company duties. This insurance can cover legal fees, settlements, and other costs arising from lawsuits alleging wrongful acts in management, financial mismanagement, breaches of fiduciary duty, or non-compliance with regulations. Given the complex legal landscape of the cannabis industry, D&O insurance is highly recommended.
Related FAQs
What alternative financing options are available to cannabis businesses when traditional bank loans aren’t accessible?
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Banks are wary of serving cannabis companies because the plant is federally illegal; as a result, most cannabis firms still operate largely with cash and struggle to access basic banking....
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Because federal prohibition deters most banks, cannabis retailers often handle large amounts of cash, creating security risks. To accept large payments safely: • Work with a payment processor experienced in...
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