Case Studies

Single Captive

A gulf coast company specializing in disaster clean-up experienced great profit but also great risk following a recent year in which a number of storms battered the coast.

As business picked up, more generators, blowers, and other equipment was purchased and moved into high risk locations. The company hired more employees and sent them into difficult, even dangerous, circumstances. Warranties were provided on completed repairs, but the company was unable to find insurance coverage for some of its risk. Other risks were insurable but commercially available coverage included large deductibles.

The owners of the company formed a captive to insure a variety of their risk. The captive issued policies providing coverage for property damage, warranty, workers compensation, employment liability business interruption, and similar policies. Some of these policies covered the high deductible portion of commercially available policies.