--- title: "Cannabis representations and warranties insurance | CARMA" description: "Representations and warranties insurance is transaction-specific. CARMA must confirm current market interest and fit before an option is presented, so the..." canonical: "https://www.carma365.com/cannabis-insurance/representations-warranties/" --- Insurance by coverage # Representations and warranties insurance and cannabis transactions Representations and warranties insurance is transaction-specific. CARMA must confirm current market interest and fit before an option is presented, so the first conversation should establish the parties, transaction, diligence, agreement, and timing. 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 transaction](/contact/)[Start QuickQuote](https://broker-forms-sandbox.pages.dev/quoter-v2/) 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 are the parties, what is being acquired, and what is the expected signing and closing schedule? **Confirm** Which areas of diligence are complete, open, limited, or unavailable? **Prepare** Transaction summary, party and ownership information, timeline, and requested coverage structure [Discuss a transaction](/contact/) On this page 5 sections On this page [Frame the transaction before discussing coverage](#frame-the-transaction-before-discussing-coverage)[Connect diligence to the agreement](#connect-diligence-to-the-agreement)[State questions](#state-questions)[Underwriting focus](#underwriting-focus)[What to send CARMA](#what-to-send) ## Frame the transaction before discussing coverage Identify the buyer, seller, target, industry activities, deal structure, enterprise context, signing and closing schedule, and requested insured party. Note any cannabis or hemp activity within the target or its supply chain. ## Connect diligence to the agreement Describe the diligence completed or planned across financial, legal, tax, operational, regulatory, and insurance matters. Identify the draft agreement, representations, indemnity structure, known issues, and areas excluded from diligence. ## Transaction questions for an initial review - Who are the parties, what is being acquired, and what is the expected signing and closing schedule? - Which areas of diligence are complete, open, limited, or unavailable? - What does the current agreement say about representations, indemnity, retention, and known matters? ## 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. - Identify the transaction parties, insured interest, signing and closing schedule, and requested policy structure. - Separate known matters from completed, limited, unavailable, and still-open diligence information. - Provide the current agreement language, financial information, claim history, and advisers responsible for the transaction review. ## Records for a transaction discussion - Transaction summary, party and ownership information, timeline, and requested coverage structure - Current purchase agreement or term sheet and available diligence materials - Known issues, claims, regulatory matters, financial information, and relevant insurance 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 transaction](/contact/)[Start a business insurance conversation](/contact/)