Surety Bond Arizona | Surety Bond Agent

Which Types of Coverage Are Best Suited for a Captive?

This question comes up often, and many only think in the most general terms. But there are many, many types of insurance coverage that a properly structured Captive can be created to cover. Here is a list of coverage's that are good candidates to have in a company owned Captive:

Liability Coverage - Coverage's for which a liability to the business exists but may be covered in the standard insurance market at a high premium.

  • Advertising Liability
  • Anti-Trust and Unfair Competition Liability
  • Commercial Vehicle Insurance
  • Construction and Design Defects Insurance
  • Copyright Infringement
  • Deceptive Trade Practices
  • Directors and Officers Liability Insurance
  • Employment Practices Liability Insurance
  • Environmental Liability Insurance
  • Errors and Omissions Insurance
  • Libel and Slander Insurance
  • Malpractice for Licensed Professionals
  • Performance Liability Insurance
  • Product Liability Insurance
  • Structural Defects Liability Insurance
  • Title Insurance
  • Trademark Infringement Insurance

Casualty Coverage - Coverage's for which the potential for loss to the business exists but may be covered in the standard insurance market at a high premium.

  • Administrative Action by Governmental Entities Insurance
  • Advertising and Marketing Failure Insurance
  • Anti-Trust and Unfair Practices Insurance
  • Business Credit Loss Insurance due to loss of creditworthiness
  • Business Dirty Tricks Insurance due to aggressive competitors
  • Business Document Forgery and Counterfeiting Insurance
  • Business Extortion Insurance
  • Business Interruption Insurance
  • Business Reputation Insurance
  • Cargo Loss Insurance
  • Cash In Transit Insurance
  • Commercial Crime Insurance
  • Communications Breakdown or Interruption Insurance
  • Computer Loss of Data Insurance
  • Computer “Hacker” Insurance that results in loss to the business
  • Computer Software Liability Insurance
  • Computer Virus Insurance which resulted in loss of business data due to infection
  • Confiscation and Expropriation Insurance
  • Contract Frustration Insurance
  • Copyright Infringement
  • Counterfeiting of Product “Loss of Profit” Insurance
  • Currency Risk Insurance
  • Delay in Start Up Insurance
  • Eminent Domain Insurance
  • Employee HIV Contamination Insurance
  • Financial Crime and Embezzlement Insurance
  • Force Majeure Insurance
  • Foreign Operations Insurance
  • Goods In Transit Insurance
  • Judicial and Administrative Delay Insurance
  • Identified Market Risk Insurance
  • Insurance Failure and Bad Faith Insurance
  • Lawsuit Interruption Insurance
  • Labor Cost Insurance
  • Legal Expenses Insurance
  • Lender Failure Insurance
  • Loss of Key Customer Insurance
  • Loss of Key Employee Insurance
  • Loss of Goodwill Insurance
  • Machinery Breakdown Insurance
  • Patent or Trademark Infringement Insurance
  • Political Risk Insurance
  • Product Flooding Insurance
  • Product Launch Insurance
  • Product Tampering Insurance
  • Production Benchmark Insurance
  • Property Damage Insurance
  • Trade Secret Insurance
  • Strike and/or Labor Unrest Insurance
  • Terrorism Insurance
  • Theft of Company Property or Funds Insurance
  • Trade Credit Loss Insurance
  • Patent or Trademark Infringement by another Insurance
  • Warranty or Guarantee Insurance
  • Weather Risk Insurance

Excess Coverage

  • Excess Insurance above the limits of other coverage's, be that of a captive or standard risk insurance

Bonds

  • Buyer Credit Risk bond
  • Customs Duty Bonds
  • ERISA Guarantee Bonds (Limited to Only Domestic Domiciles)
  • Fidelity and Surety Bonds
  • Performance Bonds

There are many, many types of risk that businesses “incur” every day which are well suited for a captive insurance company. A captive can issue an insurance policy gaining the advantage of paying premium to an entity you own, not to an insurance company, and building up an asset on a tax advantaged basis.

For a more detailed explanation, please give us a call.