​Contingent Business Interruption: Risks related to disruptions in the supply chain or the business operations of key suppliers or customers.

​Contractual Risks: Risks arising from specific contractual obligations or liabilities that may not be adequately covered by standard insurance policies.

Coverage Gaps: Situations where commercial insurance policies have gaps or exclusions that leave the company exposed to certain risks.

Employee Benefits and Healthcare Costs: Risks related to employee health benefits, including rising healthcare costs, disability claims, or pension liabilities.

Environmental Risks: Risks related to pollution, environmental damage, or compliance with environmental regulations.

Global Risks: Risks associated with international operations, including political, currency, and legal risks.

High-Frequency, Low-Severity Risks: Risks that occur frequently but result in relatively small losses, such as employee accidents, workers’ compensation claims, or minor property damage.
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High-Severity Risks: Risks that have the potential for catastrophic losses, such as product liability claims, environmental liabilities, or major property damage.
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Industry-Specific Risks: Risks unique to the company’s industry or operations, which may not be adequately covered by commercial insurers. Examples include cyber risks for technology companies or supply chain disruptions for manufacturing firms.

Intellectual Property Risks: Risks related to the protection and defense of intellectual property, including patent infringement claims or intellectual property theft.

Legal and Regulatory Risks: Risks related to changes in laws and regulations that could impact the company’s operations or lead to legal actions.

Market Risks: Risks associated with fluctuations in financial markets, such as currency exchange rates, interest rates, or investment losses.
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Natural Disasters: Risks associated with natural disasters, such as earthquakes, hurricanes, or wildfires, which can cause significant property damage.
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Product Recall: Risks associated with product recalls, which can be costly and damaging to a company’s reputation.
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Reputational Risks: Risks that could damage the company’s reputation, including social media crises, product recalls, or public relations challenges It’s essential for companies considering a captive insurance arrangement to conduct a thorough risk assessment to identify which specific risks are driving their decision and whether a captive is a suitable solution for managing those risks effectively.
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Supply Chain Risks: Risks related to disruptions in the supply chain, including supplier bankruptcies, transportation issues, or raw material shortages.
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Uninsurable Risks: Risks that are difficult or expensive to insure through traditional markets, such as reputation risk, intellectual property risk, or regulatory compliance risk.
 
Additionally, working with risk management professionals and consultants can help companies navigate the complexities of establishing and operating a captive insurance company.