--- title: "Directors and officers insurance | CARMA" description: "Directors and officers liability insurance can address certain claims about management decisions, subject to policy terms and exclusions. The review..." canonical: "https://www.carma365.com/cannabis-insurance/directors-officers/" --- Insurance by coverage # Directors and officers insurance for cannabis businesses Directors and officers liability insurance can address certain claims about management decisions, subject to policy terms and exclusions. The review should connect ownership, governance, financing, financial condition, disputes, and planned transactions. Prepared by [CARMA Insurance](/about/) Reading time 1 min read Content updated August 12, 2026 Carma Insurance LLC [Business entity NPN 21134854](/licensing-disclosures/) Related CARMA expertise [Zimraan Shikari, Director, Underwriting](/experts/zimraan-shikari/) [How we publish guidance](/editorial-standards/) [Discuss a management liability account](https://broker-forms-sandbox.pages.dev/application)[Start QuickQuote](https://broker-forms-sandbox.pages.dev/quoter-v2/)[Speak with the CARMA team](/contact/) Coverage and availability depend on the account, state, insurer and underwriting review. General information and nonbinding indications do not bind insurance; the applicable binder, policy, endorsements and law govern coverage. Important insurance information This guide is general information and does not determine coverage or legal requirements for your business. Policy terms, exclusions, conditions and available options vary. Contact the appropriate licensed insurance representative about your account, request confirmation of any coverage placed, and review the applicable insurance documents. An application, inquiry or nonbinding indication does not by itself bind or change insurance. Account brief ## What to clarify before discussing this account **Clarify** Who owns, governs, finances, and controls each entity in the proposed insured group? **Confirm** What fundraising, debt, transaction, litigation, or regulatory activity is current or planned? **Prepare** Entity chart, ownership table, board and officer list, and governing-document summary [Discuss a management liability account](https://broker-forms-sandbox.pages.dev/application) On this page 5 sections On this page [Map ownership and decision-making authority](#map-ownership-and-decision-making-authority)[Surface financial, investor, and transaction concerns](#surface-financial-investor-and-transaction-concerns)[State questions](#state-questions)[Underwriting focus](#underwriting-focus)[What to send CARMA](#what-to-send) ## Map ownership and decision-making authority Identify entities, owners, board members, officers, investors, managers, and subsidiaries. Describe voting rights, board practices, governing documents, outside directorships, and any changes in control. ## Surface financial, investor, and transaction concerns Provide current financial context, capital activity, debt, fundraising, acquisitions, sales, litigation, regulatory matters, employment disputes involving executives, and prior demands against management. ## Management liability questions to resolve - Who owns, governs, finances, and controls each entity in the proposed insured group? - What fundraising, debt, transaction, litigation, or regulatory activity is current or planned? - Have investors, owners, employees, customers, competitors, or authorities alleged management misconduct? ## What CARMA wants the submission to explain These details help the team understand the account and identify the next useful question. They do not establish eligibility or available terms. - Describe ownership, governance, financing, subsidiaries, investors, and the decisions made by directors and officers. - Identify prior disputes, threatened claims, regulatory matters, transactions, and changes in control. - Provide governing documents, financial information, cap-table context, and the requested management-liability structure. ## Records for a directors and officers review - Entity chart, ownership table, board and officer list, and governing-document summary - Financial statements, financing and transaction information, and current business plan context - Litigation, demand, regulatory, employment, and prior management-liability claim history ## Can CARMA consider this account? CARMA confirms program fit, licensing, state availability, coverage options, and market interest for each account. This guide does not promise eligibility, terms, pricing, or placement. Important insurance and legal information CARMA's website provides general information only. It is not insurance, legal, tax, regulatory, underwriting, safety, risk-management, or claims advice. Nothing on this site is a quote, binder, policy, coverage determination, legal opinion, or promise of eligibility, availability, pricing, terms, limits, or placement. Only an issued policy and its endorsements can provide coverage, and their actual terms, conditions, limitations, and exclusions control. Sending information, following a link, or speaking with CARMA does not bind coverage, change a policy, or create authority to act for an insurer unless an authorized party confirms that authority in writing. Do not rely on this website to report a claim, request a policy change, satisfy a notice requirement, or meet a deadline. Use the instructions in the applicable policy or written communication. Laws, licensing, appetite, carrier participation, and external sources can change, so confirm time-sensitive matters with CARMA, the controlling source, and qualified advisers. [Read the complete website disclaimer](/legal-disclaimer/). [Back to top](#main-content) Continue researching ## Put this subject in the context of the full account. Account-specific review ## Bring CARMA the account. Retail agents, wholesale brokers, and business owners can start with the details they have. [Discuss a management liability account](https://broker-forms-sandbox.pages.dev/application)[Start a business insurance conversation](/contact/)