Directors & Officers Insurance to Attract Better Talent at your Cannabis Company
Corporate Executives Want Protection from Personal Liability before Working at Cannabis Companies
|In this article we discuss how important it is for cannabis companies to purchase Directors & Officers Insurance to attract talented and highly skilled cannabis business executives. These individuals have no desire to risk their personal assets by working in the cannabis industry.|
The cannabis industry wants to attract the best talent particularly at the executive and directorship level. The roles for these corporate individuals will include the board, president, vice president, CEO, risk manager, CFO, controllers, and human resource directors.
One of the biggest obstacles for these executives cannabis employers must recognize is protecting them from personal liability.
No corporate executive wants the risk of being sued personally for their actions representing a cannabis company. They simply don’t want to put their personal assets at risk.
Unfortunately, many of these executives don’t have a solid understanding on how they would be protected should they be sued while working at the company in some capacity or the process for seeking recovery from the company itself.
By purchasing a Directors and Officers or “D&O” Insurance, cannabis companies can offer further reassurance to prospective executives who may be considering a role at the company they’ll be indemnified and protected by insurance.
The insurance protects officers and directors from personal liability involving the failure to meet corporate responsibilities, not acting with the best of intentions, or simply being negligent by making a mistake or error even if its been alleged.
Types of Claims that could Trigger a D&O Lawsuit against a Cannabis Business Executive
The cannabis industry is complicated with many uncertainties or regulations that must be interpreted and executed leaving it to the directors and officers to solve these problems. Below are examples that could lead to a claim or lawsuit against a corporate executive:
- Failure to follow corporate by laws and operating agreements
- Negligence while performing duties at the company
- Misrepresentations in corporate dealings
- Error in judgement while negotiating important contracts
- Failure to implement and execute a plan to meet cannabis statutory rules and regulations
- Issues with human resources and employment law
Cannabis companies who purchase D&O Insurance will attract better talent
The procurement of D&O insurance is a competitive advantage. Highly educated executives who worked in other industries are accustomed to having proper protection. If cannabis companies want to effectively compete in order to attract this talent, they must be prepared to purchase this type of coverage.
Do you need help purchasing D&O Insurance? Feel free to contact us as we can help you recruit the right kind of talent and remove some of the complexity when purchasing this type of insurance.