When Paying For Expensive D&O Coverage Isn't Such A Pain
- Amanda Luby
- Jun 4
- 1 min read
Many entities need D&O coverage, whether as a contractual, regulatory, or pragmatic requirement. In many instances, that coverage is never triggered because of the screening that goes into ensuring one's directors and officers are competent, engaged, and ethical.
Rather than paying money to a third-party, commercial carrier for that line of coverage that may never be activated, consider using a captive insurer instead for that D&O policy. When your company owns a captive insurer, its paying premiums to an entity within the same corporate family as the underlying insured(s). So long as that captive is managed in a well-regulated manner, with all of the appropriate risk diversification and other compliance factors met, your D&O coverage is no longer an annoying expense, but a mechanism for financing (and potentially profiting from) your company's own risk profile.
For another perspective consider reading the in-depth, trade journal article linked below; or, feel free to contact one of the executives at #AllianceCaptiveManagement to learn more. Alliance Captive Management specializes in managing captive insurers for all types of businesses. It provides all of the back-office support so that the insureds can focus on growing their main enterprises, rather than worrying about underwriting, actuarial, and claims processes.
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