What's Your Liability?

During the last several months I have had meetings with business owners regarding both common as well as uncommon lines of coverage to be insured through their Captive Insurance company(s).  As YOUR Company is unique, YOUR Company faces liabilities that are common as well as uncommon. 

The Oxford dictionary defines liability as, “The state of being responsible for something, especially by law”.

As an owner, it is common to carry that liability on YOUR shoulders.  Transferring that liability to an insurance company is common.  Transferring that liability to YOUR own insurance company is more common than you think and certainly available. Transferring liability to YOUR own Captive Insurance Company creates multiple, immediate and long term benefits https://www.alinkcis.com/benefits.

Here’s some examples of exposures discussed:

·         Shipping insurance.  Shipping product from the United States half way around the world, avoiding pirates of Somalia, and protecting the valuable products being shipped. Shipping insurance is a service that most carriers offer that protects shippers against lost, stolen, or damaged packages. If an insured package does not reach its destination, or if it is damaged when it's delivered, the shipper can file an insurance claim with the carrier.

·         Political risk.  One owner is concerned about operations in volatile political regions in the world where company operations are being implemented. Political risk is the risk that an investment's returns could suffer as a result of political changes or instability in a country.

·         Supply chain interruption.  Supply Chain Insurance Policy covers the financial consequences of a loss of business income, as well as the incurrence of extraordinary, unplanned expenses, when a company’s “Supply Chain” is disrupted beyond their control. Such disruption is caused by several risk events and perils.

·         Surety Bonds. In some jurisdictions, insuring Surety bonds through a Captive Insurance Company solves a significant opportunity for this low frequency exposure. Technically, Surety Bonds are not insurance as they include three parties, yet in appropriate jurisdictions, through Captive Insurance, all three parties may be satisfied.

·         Administrative Actions. Without warning or change in law, the BLM simply raised prices on oil & gas companies on their Surety Bonds.  With this coverage, the insured may file a claim for losses. Administrative action is the body of law and remedies available to administrative agencies of government. This can include rule making, adjudication, and, more commonly, the enforcement of a specific regulatory agenda.

·         Product liability and product recall. Amazon is now requiring this coverage for products sold through their platform. Any or all parties along the chain of manufacture of any product to the end consumer can be held accountable for dam-age caused by that product. This includes the manufacturer of component, an assembling manufacturer, the wholesaler, and the retail store owner.

Insurance coverage for the cost of getting a defective product back under the control of the manufacturer or merchandiser that would be responsible for possible bodily injury or property damage from its continued use or existence. Insurance covers costs such as customer notification, shipping costs and disposal costs.

·         Medical benefits. Portions of partially self-funded medical benefits, specifically Stop-Loss coverage has been, and continues to be insured in Captive insurance companies.

·         Environmental Liability. Several industries and projects are insuring environmental liabilities in their own insurance company. Environmental Liability insurance covers wrongful acts leading to bodily injury or property damage arising out of any pollutants released into the air, water, or any disposal system.

·         Accounts receivable insurance = trade credit. Trade Risk Insurance protects the insured against default, insolvency, civil unrest, or government action preventing payment by a debtor. The policy covers original amounts owed to the insured, plus reasonable interest if charged to their customer, and collection costs.

·         And many, many more.

Transfer YOUR Risk to YOUR Captive Insurance Company and create

Your Link to Security!

Rich Ericson, President

ALINK Captive Insurance Services

• Direct: 720-213-0583 • Email: Rich@ALINKcis.com •  www.ALINKcis.com