The captive approach is particularly helpful in two scenarios:
- It enables companies with particularly difficult exposure to place coverage in situations where there might not be coverage available.
- It allows companies with exceptional safety and loss records to place coverage far more
economically than in the standard market.
A few years ago, one of our clients was having difficulty placing products liability coverage. While their claims expense for products liability was nearly spotless, insurance companies were reluctant to offer coverage at any price due to the nature of their products.
The Chittenden Group was able to place coverage in a captive insurance program on a very favorable basis. Since that time this insured has had few minor products liability claims. Not only was coverage placed, but their cost of insurance was far below what the standard market had charged when they were willing to provide coverage.
If the captive approach sounds like it might work for your company, the Chittenden Group would be happy to do analyses on your current scenario to see if the captive approach might work for your company.