On Wednesday, September 26, we're giving a webinar on converting from a pool-based captive to a stand-alone pure captive. The webinar is at 10AM. You can sign up here.
A captive insurance company is part of a larger plan, often referred to as "Enterprise Risk Management." While it's easy for management to dismiss this as an unnecessary and resource wasting endeavor, it's vitally important.
For example, suppose your client is a manufacturer in the path of Hurricane Florence. As of now, they would have shut down operations, prepared their facilities for the hurricane, and locked everything up. But that's not all. They'd have to wait for the storm to hit and then pass, inspect the facilities for damage, and then work as fast as possible to start everything back-up.
As with all things in life, the best time to prepare for this is before it happens. And that's where business continuity planning comes into play. These are the steps in the process (this from my old and dog-eared ARM 54 book, First Edition):
The captive is part of the process. Captive funds help to restore the insured to being whole both physically and financially. But the captive should be integrated into a larger business continuity plan as well.