California Captive Insurance Risk Coverage
California captive insurance services are available to owners of closely-held midmarket businesses who want to take control of their risk coverage. Opting for commercial coverage as a singular solution leaves businesses open to financial vulnerabilities, as conventional insurance coverages may contain gaps. When business owners form their own captive insurance companies, they are ensuring that when a loss event occurs, they’re not footing the bill due to a claim denial.
Moreover, the planning benefits garnered from the captive can positively affect their bottom line; from comprehensive risk coverage to asset protection to secured loans.
Working with a qualified captive insurance manager can help business owners navigate the complex nature of captive design, implementation, and ongoing administration. In collaboration with The Feldman Law Firm LLP, Capstone’s true turnkey approach includes all aspects of the planning, including insurance, tax, and legal support. Based in Texas, Capstone is a captive insurance management company in that can form captives in California. We have a proven track record for providing the very best in captive insurance and alternative risk planning. Private, closely-held businesses operating in Silicon Valley, the Bay Area, San Diego, and other areas in the state have an opportunity to expand their risk coverage while making their businesses more efficient.
For some industries, new risks are emerging, creating a vital need for tailored coverages that address the unique, changing needs of closely-held businesses.
California Captive Insurance Companies and Cyber Risks
Technology, in particular, is combating a growing cyber threat-- the digital space has become a prime target for cyber criminals, where sensitive information can become vulnerable to theft. 62% of cyber-breach victims are small to mid-size businesses, which are at the greatest risk for an attack. According to Property & Casualty 360, an insurance industry publication, businesses that suffer a breach that don’t have insurance protections can expect to pay three times as much for these services, and even then, are often doing so to vendors that haven’t been vetted and selected by a major insurer. It is clear that businesses of all sizes in this sector must be proactive in mitigating risks before a loss occurs.
Overall, tech is huge in California. The Los Angeles Times reported that Western Digital, the state’s leading maker of hard disk drives earned $15 billion in revenue in 2013. Other tech companies make a considerable impact on the state’s economy as well. In 2013, Apple reached $170 billion in revenue; McKesson earned $122 billion and Hewlett Packard, $122 billion. These larger companies provide insight into the breadth and influence the industry has on the state and the country.
Hacking, cyber stalking, identity theft, and malicious software installation are just some of the cyber-threats that can affect large and midmarket businesses in California and the world over.
The global average loss per cyber-attack is $3,220,000 (Source: Inc.com).
Forming a California captive insurance company can ensure that losses stemming from a data breach or other peril will be funded, minimizing further decrease in profit and revenue numbers. Business interruption, costs emanating from lawsuits, reputation damage control, a disruption in the supply chain, etc. can all be addressed with the comprehensive risk coverages written through a captive.
Commercial insurance coverages from carriers such as Travelers, Progressive, and Liberty Mutual may contain gaps that will leave businesses liable for covering losses. By working with Capstone Associated and forming your own captive insurance company, you will have more control over your alternative risk management program.
To learn more about Capstone’s CAP_YEARS_NUMBER+ year track record and to learn more about the benefits of a captive insurance arrangement, please call us at WEB_TEL.