CAPTIVE INSURANCE
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RISK TYPES
Administrative Actions
This specialist captive insurance policy provides reimbursement for costs and expenses associated with defending a regulatory action and extends to include civil fines and penalties applied. An example of regulatory bodies that may bring an action is OSHA, FDA or EPA. Another example would be breach of HIPAA that can bring with it sizeable civil fines.
Business Interruption
Traditional Property coverage provides limited business interruption coverage and is mostly limited to interruptions to your business following damage at your premises. Captive insurance arrangements can look further afield and are not necessarily restricted by the period of restoration found on commercial policies.
Credit Insurance
Credit insurance protects you for bad debts including credit-card defaults. Commercial coverage is available but can be somewhat restrictive.
Crime
This policy covers such things as employee dishonesty; forgery or alteration; computer fraud; funds transfer fraud; theft of money and securities and money orders and counterfeit money. Commercial coverage is available. A captive can also offer this coverage but with fewer exclusions and lower deductibles than is common in the commercial field. With restaurants known to have large cash holdings at particular times crime can be a valuable insurance to have.
Cyber Liability
Cyber Liability covers the first- and third-party risks associated with e-business, the Internet, networks and informational assets. The policy includes coverage for, besides other things, hacking, the infringement of intellectual property, virus transmission, or any other serious trouble that may be passed from first to third parties via the Web. Commercial coverage is available; however, terms and conditions can be restrictive and premiums high compared with the extent coverage provided.
Directors and Officers
Coverage provides protection for the directors and officers of a corporation for actual or alleged wrongful acts committed in their role as directors or officers. Commercial insurance is available but terms can be restrictive with high deductible amounts. A captive insurance approach can assist by providing a tailor-made policy to meet your needs.
Employment Practices Liability Insurance
EPLI protects you should an action for discrimination or wrongful termination or the like. Many commercially available policies can be restrictive with many key exclusions such as Wage and Hour. A captive insurance arrangement can provide bespoke coverage to provide maximum protection including Wage and Hour claims to which restaurants can be particularly susceptible.
General Liability Difference in Conditions
Whilst you are not legally required to insure your General Liability risk, common practice is that this is placed in the commercial insurance market. Many captive insurance companies insure an aspect of the sponsors General Liability most commonly by insuring self-insured retentions under the commercial placement or by a reinsurance cession from the commercial General Liability insurer.
Healthcare Stop Loss
Medium and large employers who have a self-insured healthcare program for their employees may purchase commercial “stop Loss” coverage to protect them from unusually large single losses or annual aggregate losses. A captive can provide this coverage as well, to protect the plan sponsor, typically working within a captive pooling arrangement with other similar risks to provide a smoothed underwriting performance, and help retain underwriting profitability in the captive.
Intellectual Property
Protecting one’s intellectual property (e.g. patent, copyright, trademark or trade secret) or defending the use of intellectual property is a significant risk exposure that is not addressed by a standard Commercial General Liability. Commercial insurance can be difficult to obtain with restrictive and expensive coverage.
Legal Defense
The costs of defending any legal action in the United States can be very expensive. This policy provides a reimbursement for your legal costs incurred to defend a legal action brought against you. This coverage is not intended to provide coverage where other insurance is in place, for example your General Liability policy. The captive policy provides sleep easy protection should you face a legal action.
Product Recall
Product Recall covers expenses associated with recalling a product from the market. Product recalls can be involuntary (required by a regulatory agency or the government) or voluntary (the manufacturer notices a defect that is unlikely to force an involuntary recall), and can be costly. Coverage can extend to include the value of the product recalled. Whilst this coverage is available commercially a captive arrangement can provide greater claims control and wider coverage.
Property Difference in Conditions
This captive insurance policy is a sleep easy policy covering loss or damage to your assets that are not covered by commercial insurance. Coverage may be triggered by such things as excluded perils such as earthquake and flood or by breach of conditions imposed by or by the many standard exclusions found on commercial insurance policies.
Product Wastage Stop Loss
This policy is for those corporations whose products have a limited shelf life such as supermarkets. The captive policy provides protection should you face a sudden increase in the cost of wastage and covers amounts over that reasonably expected in any one year.
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Phoenix, AZ 85018
Phone: (602) 570-1279
Fax: (877) 213-2741