US
CA
EU
Why Cannabis Businesses Need Management Liability Insurance
Unlike traditional companies, cannabis operators face:
- Heightened regulatory oversight and compliance risks
- Increased exposure to shareholder, investor, and employee lawsuits
- Unique risks from funding rounds, startups, and board-level decisions
CannGenPRO helps protect companies and their leaders by covering defense costs, settlements, and judgments resulting from management-related claims.
Product Highlights
- Public D&O coverage
- Private Company D&O and EPL Coverage
- Market-leading modular forms designed for cannabis, CBD & hemp clients
- Risk management services included for CannGenPRO policyholders
D&O Coverage:
- Fiduciary Liability by endorsement to Private D&O coverage
- Full Side ABC coverage
- Broad cannabis regulatory coverage
EPL Coverage:
- Third-party liability included
- Wage & Hour defense sub-limit available by endorsement
Approved Management Liability Classifications
Coverage available for:
- Cultivators
- Harvesters and Processors
- Manufacturing
- Transportation & Delivery
- Dispensaries
- Property Managers and Real Estate
- Laboratories & Research
- Security Firms
- Hospitality
- Extractors and Licensors
- Ancillary Businesses & Professional Service Firms
Coverage Options
- Primary Coverage with limits up to $5M aggregate
- Separate or combined D&O/EPL coverage available
- Duty to defend form with deductible
- Duty to indemnify form with self-insured retention
- Prior acts coverage available
- No Controlled Substance Act exclusions
- Side A carve-backs for certain exclusions
- Manuscript endorsement options available
Appetite & Eligibility Criteria
- Business must operate in legal cannabis, CBD & hemp states
- Startups and new ventures welcome
- Covers businesses undergoing capital/funding raises
- 51% or more of revenue must derive from cannabis, CBD & hemp
- Asset sizes up to $500M
- All classes including ancillary service providers
Ineligible Risks
- Non-US or non-Canada domiciled risks
Submission Requirements
Submissions must be emailed to canngenpro@canngenins.com and include:
- CannGenPRO Application (U.S. Management Liability)
- Audited financials (if available), or 12-month balance sheet & income statement
- List of board members and management team
- Capitalization table
- Business plan / pitch deck (if startup)
- 10-K and 10-Q (Public D&O submissions)
- Loss runs (current)
Additional resource: CannGenPRO Management Liability Flyer
Why Choose CannGen for Cannabis D&O Insurance?
- Specialized Expertise – First MGU dedicated exclusively to cannabis, CBD & hemp
- Tailored Coverage – Policies designed to protect directors, officers, and executives in the cannabis industry
- Comprehensive Limits – Up to $5M aggregate, with flexible D&O and EPL options
- Strong Carrier Backing – Supported by A.M. Best A+ rated financial strength
- Risk Management Support – Added value for policyholders through proactive services
FAQs About Cannabis Management Liability Insurance
1. What does cannabis D&O insurance cover?
It protects directors, officers, and company executives against claims related to mismanagement, regulatory issues, or decisions that result in lawsuits.
2. Is employment practices liability (EPL) included?
Yes. EPL is included with coverage for third-party claims, with wage & hour defense sub-limits available by endorsement.
3. Who needs cannabis management liability insurance?
Any cannabis, CBD, or hemp company with directors, officers, or employees—especially startups, companies raising capital, and multi-state operators.
4. Are startups eligible for coverage?
Yes. CannGenPRO welcomes startups and new ventures, including those raising funding or building management teams.
5. Does coverage exclude federal issues like the Controlled Substances Act?
No. CannGenPRO has no CSA exclusions and includes carve-backs for Side A coverage.
Protect Your Cannabis Leaders Today
Your directors, officers, and managers make critical decisions that drive your business forward. Protect them — and your company — with CannGen's Cannabis Management Liability Insurance.