Coverage Options for Captive Insurance Companies
There is no such thing as a standard insurance policy when it's being
issued by a captive insurance company. Captives often use "manuscript"
policies which are tailored to the unique needs of the organizations to be
insured by the captive.
Captive owners have many coverage options to consider, with some options
being viable only under certain circumstances. ORG helps you evaluate and
choose the best options, then drafts a customized insurance policy for your
captive. Here are some of the coverage options to consider:
OPTIONS FOR RISKS TO BE INSURED
In addition to the common risks listed below, our Enterprise Risk Management
review can uncover additional risks faced by your organization that might be
appropriate to insure in your captive insurance company. This review will
identify those risks not covered by your current insurance program. A
Total Cost of Risk analysis can also identify those risks that are currently
insured risks that could be more effectively insured in a captive.
- Advertising liability
- Automobile physical damage
- Automobile liability
- Aviation liability
- Business interruption
- Commodity risks
- Construction defect
- Contractual liability
- Credit risk
- Crime
- Difference in conditions
- Directors & officers liability
- Disaster recovery
- Dramshop / liquor liability
- Earthquake
- Employment practices liability
- "Enterprise" risks
- Environmental cleanup
- Environmental / pollution liability
- Errors & omissions liability
- Fine art
- Flood
- Foreign exchange
- Foreign workers compensation
- General liability
- Health insurance
- Kidnap & ransom
- Infringement of copyright, patent, or trade secret
- Intellectual property
- Internet activities
- Life / accidental death & dismemberment
- Long-term disability
- Medical malpractice
- Medical stop-loss
- Mergers and acquisitions
- Mortgage impairment / loan impairment
- Products liability / product defect
- Product recall
- Property
- Regulatory risks
- Residual value
- Retiree medical
- Surety / performance guarantees
- Terrorism / riot and civil disturbance
- Voluntary benefits
- Warranty
- Workers Compensation
- Workplace Violence
OPTIONS FOR COVERAGE TYPE
- Claims made
- Claims paid
- Occurrence
- Worldwide or country specific
OPTIONS FOR WHO IS AN INSURED
- Named insureds, additional named insureds, additional insureds
- Organizations and joint ventures
- Including / excluding employees
- Named individuals or named positions
OPTIONS FOR POLICY ISSUANCE
- Direct issue versus fronted
- Single master policy versus separate individual policies
- Monthly, annual, or multi-year policy period
OPTIONS FOR POLICY LIMITS
- Coverage limits, sub-limits, combined limits
- Blanket limits or scheduled limits
- Policy aggregate limits
- Single year versus multiple year limits
- Defense costs inside or in addition to policy limits
- Primary or excess of other insurance
- Deductibles or coinsurance
OPTIONS FOR PREMIUMS AND PAYMENT TERMS
- Annual fixed premium or adjustable premium
- Premium rating basis and premium allocation
- Minimum and earned premiums
- Premium payment terms
- Premium adjustment terms
- Premium refunds and coverage cancellation terms
OPTIONS FOR CLAIMS SETTLEMENT
- Indemnify or pay-on-behalf-of
- Choice of defense attorney
- Choice of venue / jurisdiction
- Settlement authority
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