The principals of a Houston-area furniture retailer and interior design firm sought better control over potential business risks that its commercial policies were not covering.
The firm launched a captive insurance program in 2013 to mitigate these risks.
Over 8 years the program has been called upon to cover a number of such claims. The policy not only covered damage and business interruption losses from Hurricane Harvey, but it also paid claims on lost business due to a key employee exiting the company.
Capterra Risk’s Exceptional Support
The principals value Capterra’s deep expertise in risk mitigation and understanding the retailer’s requirements of their captive program. “Capterra allows us to focus our attention on our business with the ‘peace of mind’ that Capterra has our captive program fully covered. They rigorously track the program’s details, keep us in full compliance, and update us on regulatory changes that affect our captive insurance company.”
COVID-19: Illustrating the value of captive insurance
The captive program really showed its worth in spring 2020 when COVOD-19 shut down the United States economy. While US government programs did provide some payroll support, the business still suffered closures and significant delays, leading to lost profits. The captive’s Contingent Business Interruption policy paid a significant claim to cover these losses. This claim would certainly have been rejected under a commercial policy.