Cannabis Rate Guide — U.S. Coverage 2025 Cannabis Insights Rate Guide Most public cannabis companies renewing their D&O insurance have already experienced the most significant rate reductions as the market has adjusted to the evolving risk profile (increased market competition, shrinking asset values and improving financial stability). There is abundant capacity from insurers eager to D&O Public -15% to -5% maintain or grow their market share. Underwriters continue to offer aggressive terms, including favorable conditions and pricing. However, public cannabis companies still face unique risks, particularly around regulatory scrutiny and shareholder litigation. As a result, while terms are favorable, businesses must remain vigilant about evolving governance challenges in this dynamic sector. Rates specific to cannabis are stabilizing, but carriers are pursuing increased retentions. Although breaches and outages at major service providers (i.e., Change Healthcare and CrowdStrike) have not yet triggered widespread rate hikes, they serve as warning signs of potential market hardening. As cyber risks grow in complexity and frequency – particularly for industries like Cyber Flat to +5 cannabis that handle sensitive data and rely on tech platforms for operations – underwriters may become more cautious. This could lead to tighter market conditions in early 2025, with higher premiums and stricter underwriting requirements. Businesses must stay ahead of these trends through robust cybersecurity measures as carriers will likely scrutinize risk management practices more closely as the sector matures and cyber threats become more sophisticated. NOTE: Rate is typically defined as the amount of money necessary to cover losses and expenses while providing an insurance company with a profit for a unit of exposure. Exposure refers to a business’ or individual’s susceptibility to various daily risks. Carriers evaluate the level of risk an insured faces in calculating insurance premiums. 10