From Insurance Law 360:
As northern California wineries look to recover from devastating October wildfires that scorched a wide swath of the state’s famed Napa and Sonoma wine country, they will face a host of insurance issues, including whether coverage is available for smoke-tainted grapes and how much they can recover for business interruption.
I routinely have conversations with insurance agents who assure me that their policies are comprehensive, covering all potential losses the insured might face. But a good insurance company lawyer will tell you that's most assuredly not the case. This is especially true when the company is facing a large number of claims; that's when counsel sharpens their pencils, digs into the dictionary and case law, and begins narrowing the legal meaning of key words and terms.
This highlights two benefits of captive insurance. First, the ability to write your own policy gives the insured complete control over the defining key terms and conditions in the policy. Second, controlling the claims process means the claim will be handled expeditiously and efficiently.
These two benefits alone make a captive a worthwhile venture for any company.
Captives are a complex business transaction. Placing them in a jurisdiction that was utterly decimated by two hurricanes is probably not the best idea.