What is Covered in a Captive?

Commercial vs. Self vs. Captive Insurance

Captive Insurance Self Insurance Commercial Insurance Comparison Chart

Commercial vs. Self vs. Captive Insurance

Captive Insurance Self Insurance Commercial Insurance Comparison Chart

Coverage Beyond Commercial Insurance

Coverage Beyond Commercial Insurance

What is Covered with Captive Insurance

TOP INSURED RISKS

Business Income/Interruption

Commercial Gaps/Exclusions

Coronavirus/Pandemics

Cyber Risk/Data Loss/Hacking

Deductible Reimbursement

Employment Practice Liability

Loss of Key Client/Contract

Loss of Key Employee

Loss of Key Supplier

Product Warranty/Insurance

Regulatory Change

Rental Income Replacement

Audit Liability

Audit liability coverage protects against excessive billing or coding errors as a result of a third-party, non-governmental audit. It reimburses the insureds for unexpected costs associated with adjustment of those billing errors, including any business interruption that came by reason of prolonged audits.

Business Income/Interruption

Reimburses Insured for otherwise uninsured costs incurred resulting from:
• Loss of net income.
• Delay in returning to original revenue levels once back in operations.
• Extra expense.
• Losses in excess of traditional policy limits.

Collections/Receivables

Reimburses Insured for costs incurred resulting from:
• Amounts due from Insured’s customers that Insured is unable to collect.
• Interest charges on any loan required to offset amounts Insured is unable to collect.
• Collection expenses.

Commercial Gaps/Exclusions

Construction Delay & Defect

Reimbursement for covered costs and expenses the Insured has paid, resulting from the liabilities assumed under a contractual agreement that resulted in construction delays and/or defects.

Consumer Boycott

Coronavirus/Pandemics

Cyber Risk/Data Loss/Hacking

Reimburses Insured for costs incurred resulting from a security breach or incident involving electronic data privacy. Coverage includes loss of digital assets, employee privacy liability, and electronic media liability.

Deductible Reimbursement

Directors & Officers

An insurance form that protects the insured against liability for committing an error or omission in performance of professional duties. This has to be designed to cover financial losses rather than liability for bodily injury (BI) and property damage (PD). Policy to include Elder Abuse (EA)

Embezzlement

Reimburses Insured for costs incurred resulting from damages related to embezzlement.

Eminent Domain Insurance

Employment Related Practices Liability

Reimburses Insured for costs incurred resulting from employment-related claims such as discrimination, wrongful termination, sexual harassment, and other employment-related allegations.

Environmental Liability

Reimbursement for covered costs and expenses the Insured has paid related to remediation expenses the Insured has paid as a result of an environmental condition.

Errors & Omissions

An insurance form that protects the insured against liability for committing an error or omission in performance of professional duties. This has to be designed to cover financial losses rather than liability for bodily injury (BI) and property damage (PD). Policy to include Elder Abuse (EA)

Fiduciary Liability

Foreign Operations Insurance

Government Action Liability

Health Insurance/Stop Loss

Independent Distributor's Liability

Intellectual Property Infringement

Intellectual property infringement insurance reimburses the insureds for attorney fees expended to defend against claims that the insured violated the intellectual property rights of others.  The policy would also reimburse the cost of repair to computer systems, or other losses related to intellectual property infringement.  This policy also covers business interruption secondary to infringement of the insureds intellectual property.  Coverage does not apply to third-party liability.

Inventory/Cargo Loss

Reimburses Insured for otherwise uninsured costs incurred resulting from:
• Loss of products between point of purchase and point of sale.
• Debris removal or pollution cleanup resulting from an accidental dumping.

Kidnap/Ransom/Extortion Liability

Labor Cost/Strike

Litigation Expense

Reimburses Insured for costs incurred resulting from:
• Uninsured legal expense resulting form legal process or action including appeals against or brought on behalf of any Insured.
• Fees for attorneys, paralegals, legal secretaries, notaries, expert witnesses, document production, court reporters, travel related to the litigated matter and
the cost of any other materials such as video or photo reproductions to be produced in court or at deposition.
– Compensation paid to Insured’s employees in connection with the litigated matter.
– Legal Fees an insurer initially pays but wants reimbursed due to an uninsured loss.

Loss of Key Client/Contract

Reimbursement for covered costs and expenses the Insured has paid and / or loss of business income resulting from the loss the Insured sustained due to the loss of a Critical Contract.

Loss of Key Employee

Reimbursement for covered costs and expenses the Insured has paid and / or loss of business income resulting from the loss the Insured sustained due to the loss of a Critical Customer, Critical Employee, Critical Contract and/or Critical Supplier. The Insured will have the option under Supply Chain Interruption to take any or all of the Critical Coverages.

Loss of Key Supplier

Reimbursement for covered costs and expenses the Insured has paid and / or loss of business income resulting from the loss the Insured sustained due to the loss of a Critical Customer, Critical Employee, Critical Contract and/or Critical Supplier. The Insured will have the option under Supply Chain Interruption to take any or all of the Critical Coverages.

Malpractice Liability

Patent/Copyright/Trademark

Reimburses Insured for otherwise uninsured costs incurred resulting from:
• Infringement of copyright, patent, trademark, trade name, trade dress, or service mark; any misappropriation of ideas, plagiarism, trade secrets, or other
intellectual property rights.

Product Recall

Reimbursement for covered costs and expenses the Insured has paid resulting from loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal due to the Insureds product or the Insureds work.

Product Warranty/Insurance

Reimburses Insured for costs incurred resulting from expenses to perform rework.

Property & Natural Disaster

An all risk property policy that obtains coverage for perils not insured in standard business personal property coverage.

Regulatory Change

Reimburses Insured for costs incurred resulting from the adoption, promulgation or enforcement of federal, state, or local laws, regulations, or ordinances, by
any legislative body, executive authority or agency, affecting an Insured’s business and resulting in increased costs or operating expenses, reduction in the
Insured’s production capabilities, or the Insured’s withdrawal of a product or service from the market.

Rental Income Replacement

Reimburses Insured for Rents not paid by tenants.

Sexual Harrassment

Reimburses Insured for costs incurred resulting from employment-related claims such as discrimination, wrongful termination, sexual harassment, and other
employment-related allegations.

Subcontractor Default

Terror or Acts of War

Reimburses Insured for costs incurred resulting from political violence such as revolution, insurrection, civil unrest, terrorism, or war; governmental
expropriation or confiscation of assets; governmental frustrations or repudiation of contracts; wrongful calling of letters of credit or similar on-demand
guarantees; and inconvertibility of foreign currency or the inability to repatriate funds.

Unfair Competition Liability

Trade Secrets

Workmanship Liability

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