Who Should Consider a Captive?

If you are a mature company and are currently paying large insurance premiums, but have a good claim and loss history, good risk management and the ability to finance your own exposures, consider a Captive.

What risks can be insured with a Captive?

Insurance can be purchased for just about any insurable risk. Common risks include, but are not limited to, contingent business interruption, loss of primary vendor/supplier, errors and omissions, excess professional liability insurance, loss of business reputation, construction defects, litigation defense, and employment practices.

What other risks are typically insured?

A secondary goal of captive insurance companies is to augment and provide excess coverage, as well as coverage for a host of risks that are self-insured. The most common uninsured risks are deductibles and exclusions within the existing commercial insurance policies, operating risks of the business, including loss of key man or key customers, credit default, warranty, directors and officers, errors and omissions, litigation defense, etc.

What are the ideal company profile characteristics for the creation of a SBU?

A mature company that currently pays large insurance premiums, combined with a favorable loss history, proactive risk management and the desire to participate in underwriting profits should consider the formation of a SBU.

What are the liabilities from other SBUs in the Series Captive?

Series SBUs combine the attributes of separate corporations (such as a parent with subsidiaries) and partnerships into one legal entity, allowing each series to function as a separate business and be protected from liability of other series SBUs. The termination or dissolution of one SBU does not affect other SBUs or the Series Captive.