Louisiana Captive Insurance Services

Louisiana Captive InsuranceFrom New Orleans to Lafayette, the state of Louisiana is a bastion of industry, spearheading economic growth for the South and for the entire country. Businesses operating within the state contribute vital raw materials and goods, such as crude oil, natural gas, and chemicals used in popular every day products. There’s no doubt that within these businesses, there is risk.

Risks Covered by Captives

This is where Louisiana captive insurance services come into play—business owners in New Orleans, Kenner, Bossier City, Shreveport and other cities in the pelican state can form their own insurance companies (called captives) to insure risks that are not covered by their commercial policies.

The largest industries in Louisiana include:

  • Petroleum and oil production. LA has the largest concentration of crude oil refineries in the U.S.
  • Natural gas. More than 112,000 miles are located in the state
  • Commercial fishing. Revenues from the industry topped $331 million
  • Chemical and petrochemical production and shipping. New plants are being built
  • Second in the U.S. for its production of sugarcane and sweet potatoes
  • Louisiana's record-breaking tourism industry brings in 28.7 million visitors; $836 million in state tax revenue during 2014

(Sources: Newsmax.com, The Times Picayune)

Benefits of Louisiana Captive Insurance Companies

Middle market businesses that support these industries undoubtedly have inherent or hidden risks that could place a financial burden on them if not proactively addressed. For example, pollution risks could lead to litigation, clean-up measures, and other costs. One quarter of the total production of gas in the U.S. comes from Louisiana and many businesses support the industry, including equipment manufacturers and shipping services. To cover potential losses, Louisiana captive insurance services are available.

Although based in Houston, TX, Capstone Associated Services, Ltd. works with captive insurers nationwide.  In collaboration with The Feldman Law Firm LLP, Capstone provides true turnkey captive insurance planning services including tax, legal, and insurance expertise.

Louisiana 831(b) captive insurance companiesBusiness owners who form Louisiana captives can cover risks that may not be commercially available or are too expensive in the conventional markets. Special risks coverages written through the captive may include:

  • Cargo/transit coverage which insures against loss to damage or property in transit in owned or leased vehicles, common carriers or goods shipped by freight forwarders
  • Damage to geophysical resources, covering losses from ensuing business interruption and extra expense that results from damage to geophysical resources (e.g. land, minerals, etc.)
  • Commercial property, expanding commercial property insurance by buying back certain coverages that are excluded from or limited by the insured’s current underlying insurance policies
  • Tax liability, covering insured against an unexpected “adverse final resolution” if filed tax returns are challenged by the federal taxing authority
  • Weather-related business interruption, which covers business interruption and extra expenses resulting from catastrophic events such as hurricanes, floods, windstorms, tornados and snow/hail storms.

The types of coverages written will depend on the types of risks within a business—Capstone will conduct an on-site feasibility study to determine what hidden risks may be present. This initial step is vital to the design and implementation of the captive. Business owners moving forward will retain control and be apprised of any changes or milestones.

Commercial insurance may cover some potential losses, but gaps in coverage may lead to unexpected financial repercussions. If you or your client is seeking a Louisiana captive management company, please call us locally at WEB_TEL for a no-obligation consultation or complete the form below.


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