What Keeps You Up at Night?
From data breaches and key employee loss to supply chain interruption and pandemic risk, your captive insurance company can formally insure the risks keeping you awake.
As a successful business owner you have tremendous responsibility — ultimately for the operational, structural, development, adaptation, and the bottom line: continued financial success of your business.
What If? Or When?
Each one of these situations may happen. Not if, but when? Traditionally, businesses adjust — they address these situations as they occur by taking resources out of the operating company, hiring more sales people, cutting back in other areas, switching providers. If not, the business will go out of business. Most businesses informally self-insure these risks. Each of these exposures, and there are many more, create a loss of income to the business. Which ones are keeping you up at night?
- Billing errors and omissions
- Breach or release of data
- Directors and officers liability
- Pandemic
- Computer system failure
- Contractual liability
- Failure to perform on contract
- Defense cost reimbursement
- Loss of a key customer
- Loss of a key employee
- Employment practices liability
- Loss of a key supplier
- Loss of licensure
- Reputational risk
- Accounts receivable
- Administrative action
- Supply chain interruption
- Loss of referrals
- Regulatory change
Insure It
As a profitable, successful business owner, insure it. Insure these low-frequency, high-severity lines of coverage formally. Not by paying premiums to a third party, rather by paying premiums to your own insurance company.
A captive insurance company is a property and casualty insurance company that is formed to cover risks of its parent company. Captive insurance is a risk management tool which allows businesses to more effectively and efficiently manage corporate risk. Captives often are set up to insure loss-of-income risk, otherwise known as enterprise risk — risk for which commercial insurance is not available or may be too expensive.
Additionally, medical stop-loss, deductible reimbursement, surety bonds, or warranties may and should be insured through your captive insurance company.
Sleep Well Every Night
Insuring risk formally through your insurance company protects your operating company, creates a new profit center, and provides additional security.
Security allows business owners to sleep well at night. Owning your own captive insurance company allows you to sleep well every night.