Understanding a Single Parent Captive

When organizations and corporations look for insurance alternatives and ways to manage their corporate risk they oftentimes turn to insurance captives.

When it comes to insurance captives available to businesses, the single parent captive (or pure captive) is the most simple. When one organization or company owns, controls and manages a captive it is considered a single-parent captive. These single-parent captives are formed to insure the company and its subsidiaries. Companies choose to utilize single-parent captives because they can help regulate insurance costs with more consistent and stable pricing from year to year. Organizations are drawn to captives because they offer flexibility. The owners maintain control of coverage, limits and providers as well as other operational aspects.

Industry experts like Caitlin Morgan cite single-parent captives as the most popular type of captive in the market today. Single-parent captives have been around for decades and continue to provide the lower costs and improved cash flow companies are looking for. There are numerous benefits to taking advantage of insurance captives but there are things to consider, too. Make sure you partner with an industry expert before you make your decisions. A little proactive research on your part can ensure you choose the right insurance coverage for your organization.

Fidelity Bond Protection for Banks

Insurance policies are commonly used to protect businesses from liability risks associated with operations, as covered claims usually address the loss from incidents of property damage, bodily injury, errors and omissions claims, and commercial auto accidents. However, within the different policies that cover these exposures, there is usually a common exclusion for loss incurred during illegal or dishonest activities. These exclusions become the main concern for those that work in areas of finance or brokerage services.

Threat Evaluations

As a way to protect both consumers and companies, the SEC has mandated that investment houses, banks, and other forms of financial services carry a blanket bond insurance coverage. According to the experts at Financial Guaranty Insurance Brokers, Inc., this form of coverage is also referred to as a fidelity or blanket fidelity bond. Areas of protection afforded from this coverage include:

  • Trading fraud
  • Forgery
  • Intellectual theft
  • Embezzlement
  • Material theft

The Key Difference

A blanket bond is important for financial institutions not just because of the SEC mandate, but because of the key difference, it holds when compared to traditional insurance. A blanket bond is able to protect against loss that is linked to illicit activities occurring within the company. Traditional insurance generally only protects from external occurrences of loss.

Internal threats, such as those that stem from employee activity, are the greatest areas of concern for financial institutions. A blanket bond minimizes the financial backlash that could occur if a claim is filed.

Extending Workers’ Comp Coverage

There are times when a company needs to extend its employee injury insurance past the workers’ comp coverage they carry. Most states allow for companies to carry private insurance coverage for mandated injury liability, but four do not. These include North Dakota, Ohio, Wyoming, and Washington. Within these states, companies are required to obtain coverage through state-funded programs, which leaves a gap in some additional areas of liability. The information found at https://www.wwspi.com states that stop-gap insurance addresses this exposure.

Areas of Liability

The exact nature of gap insurance is what other companies carry in the form of employer liability coverage. This covers the potential suits of

  • Third-party suits
  • Public tort claims
  • Intentional endangerment
  • Dual capacity claims
  • Injury or illness not covered by workers’ comp plans

Additionally, leased employees are excluded from the worker’s compensation plans. The endorsement of employer liability would be enacted in most states, but within the four mentioned above, stop-gap insurance becomes the defense.

The Cost of Coverage

Most insurance companies will determine the base price of stop-gap coverage according to your company’s payroll total. For normal liability policies in private insurers, it is often an endorsement set at a minimum amount. Check your current policy to see if employer liability is addressed, and if not, contact your broker for a quote on extending your coverage.

Do You Need a Full-Time Insurance Marketer?

Running an insurance agency requires you to take on several full-time jobs. From keeping your employees on track to communicating with your clients, you are responsible for smooth operation from start to finish. Of course, this means you often have little time for marketing your agency. The professionals at Agency Tsunami recommend hiring quality insurance marketing firms to assist you along the way.

Knowing When You’re Ready

Not all insurance agencies require a marketer, so decide if you’re truly ready before taking on the extra expense. If you’re having trouble keeping up with your current marketing plans, it’s a good indicator that you need to hire help. Other signs include knowing you have the finances to handle a marketing-related bill without overextending your budget, having goals for growing your agency, and knowing exactly what you need a marketer to do.

Choosing the Right Marketer

Once you know you’re ready to hire an insurance marketing firm, you need to know how to find the right one. Typically, marketers fall into two categories: generalists and specialists. Generalists have a wider range of experience that makes them more creative and flexible. However, specialists are better at focusing on a specific industry or type of marketing. Decide what you want from your marketer before determining which type will help you best meet your needs.

Remember to seek licensed and experienced marketers when hiring someone to help you grow your insurance agency. Don’t be afraid to ask for and verify references to make sure you’re getting the best for your budget.

Insurance Keeps Jet Ski Rental Companies Afloat

Whether your recreational marine company rents jet skis, Sea-Doos or WaveRunners, you need insurance to cover the associated risks. Marine insurance providers offer jet ski rental insurance programs to a diversity of rental outfitters, from marinas to resorts. As reported on https://www.merrimacins.com, the following types of insurance coverage are critical.

General Liability Insurance

General liability gives your business insurance coverage for the commonplace industry risks associated with jet ski rental. For example, in a wet environment such as a dock or marina, customers’ trips and falls are legitimate risks. A customer may slip on pavement or misstep when getting on or off a personal watercraft.

Hull Insurance

As you might imagine, damage to a jet ski or sea-doo is a regular risk in the personal watercraft rental industry. Whether a collision or stationary accident damages the body or mechanical system of the watercraft, hull insurance will cover your investment.

Watercraft Insurance

Watercraft insurance covers property or personal damage while one of your customers is operating one of your rental machines. From a damaged pier pylon to a customer’s spill that requires medical attention, watercraft insurance provides the coverage necessary to keep your business afloat.

If you want to learn more about jet ski rental insurance, contact an experienced marine insurance provider. A specialist can assist you in determining the program or products that meet your needs.