What is Covered in a Captive?
Commercial vs. Self vs. Captive Insurance
Commercial vs. Self vs. Captive Insurance
Coverage Beyond Commercial Insurance
Coverage Beyond Commercial 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.