10+ Years of Captive Coverage
The owner of a specialty chemical manufacturer has long utilized a captive program to mitigate company risk.
As a business owner, R.L.E. must look at the big picture and consider long-term decisions including purchasing insurance and best practices in risk mitigation. With Company exposures in mind, the owner is constantly looking for products to help shore up uncovered or undercovered risks in the business his grandfather started two generations before. R.L.E. first learned about captive program benefits in a Vistage group and began working with Capterra Risk Solutions President Sandra Fenters in 2010.
At the time, the CEO found that his Pennsylvania-based Company could not purchase a policy insuring environmental pollution liability with a traditional insurance carrier. He found that a captive program could write a policy to insure for that risk as well as many other uncovered risks.
“We view our captive as a competitive advantage against our competitors.”
Captive Insurance during COVID
More recently, during the COVID-19 pandemic, the chemical manufacturer had issues with its supply chain and struggled to get specific packaging parts delivered on-time or at customary prices to produce the company’s key consumer products. R.L.E. found it had to pay premium prices and to airfreight the pieces to his factory in order to fulfill customer orders. The additional expenses caused by the extraordinary situation were insured by a policy written by the captive; they would not have been reimbursed by their traditional insurance policies. The owner comments “After 10 years and as illustrated by the pandemic, our captive continues to serve our risk mitigation needs.”
“We view Capterra Risk Solutions as a very efficient team that serves our needs well. They know the industry and counsel us to ensure our captive is in compliance with regulations.”