Here’s the scene… You are an emerging cannabis company. Your growth and assertiveness in the marketplace has garnered attention from investors. You have been asked to pitch to them to secure equity for continued growth. You put together an amazing deck and wowed them with your charts and enthusiasm. Then they inquire, “Can you tell us about your insurance protection?” What do you say?
The scary fact is that most cannabis startups have little to no insurance or the wrong insurance. One way to put a damper on your awesome presentation is by sounding confused and not very confident of your insurance program. Investors have a lot at stake by putting money behind your company. Insurance might just be the security blanket they need to cut a check. Directors & Officers (D&O) coverage protects investors from a financial loss due to mismanagement of the company. D&O will likely be a necessary component of securing your funding.
So… be proactive by placing coverage before you see investors. This way when you get to the end of your presentation you can include a section on risk management and insurance. By working with a knowledgeable insurance broker who can assist with your risk management plan and offer appropriate insurance where necessary, you will look much better when asked about insurance by scrutinizing investors. D&O is a fairly affordable coverage for an emerging business. It is wise whether you are seeking funding or not. For more information on how to perfect your pitch with protection, contact us. We assist emerging as well as established cannabis businesses. It’s never too early to buy insurance, but unfortunately it’s often too late.