Captive coverages should begin with an evaluation of
your existing commercial insurance program.
ANALYSIS would help
-What kind of risks would work well with a captive IE General Liability,
Professional Liability, Auto, Property, Cyber Risk, Pollution, Key
relationships, Income loss, Warranty/Good Will, Employment Practices and
-Are there GAPS in your coverage?
-Would your operations benefit from more comprehensive coverage that
wrapped around existing coverage?
-Are there lower frequency but potentially high severity exposures that
you should be protected from?
-Maybe even coverages that are not available in the commercial insurance
-What level of insurance would provide the protection you need?
-What would the coverage form contain?
-How do you coordinate the coverage you already have with the “new
-Determine if a captive is feasible for your operations.
-Now you need an actuary to take the exposure data and research
appropriate insurance rates for your captive to charge and
-Who should own the captive and who should the Directors be?
-Would your captive benefit from pooling risk with unrelated insurers?
-If your captive is called upon to pay claims who determines what is
covered and how much should be paid?