Professional liability coverage is also known as errors and omissions (E&O) insurance. This type of insurance can protect your cannabis business against claims of misrepresentation and negligence.

Unlike other types of insurance, it doesn’t cover physical injury or property damage. Instead, it covers professional mistakes that cause financial injury.

Why Does Your Cannabusiness Need Errors and Omissions Insurance?

No cannabis business owner sets out to fail, but mistakes happen. And if you have employees, the risk of errors (even unintentional ones) increases.

GreenCore recommends that your cannabis business in all states where cannabis is legal carry general liability insurance. And in many cases, it’s the law.
However, general liability does not include professional liability or E&O insurance. This additional coverage offers even further protection for your business if a claim is made against your or your employees.

Frequently, cannabusinesses purchase a one-size-fits-all general liability policy, assuming they will be covered if a claim is filed against them. However, reading the fine print and being aware of policy exclusions is crucial. If you do not have additional professional liability coverage, you could risk facing a costly lawsuit without financial support.