Tennessee Captive Insurance Association Annual Conference

One of the greatest strengths of captive insurance companies is the ability to cover perils that are either not available or not affordable in the commercial market.  One key example has been business interruption (BI) coverage associated with a variety of causes of loss, including fire, windstorm, regulatory action, contingent BI, loss of franchise, key employee, or customer, or reputational damage events.  The COVID-19 pandemic has had profound effects on BI coverage.  These have ranged from increased captive claims activity, scrutiny of BI coverage form pandemic exclusions in the traditional and captive insurance policy forms, and a surge in demand for BI related to communicable diseases. All of this has led to a fundamental rethinking of how BI coverage is structured, rated, and reserved in captive insurance companies. In this session we will discuss the impact that we've seen and consider prospective changes to captive BI coverages moving forward.

Learning Objectives:
1. Understand how captive BI polices were impacted by COVID-19
2. Understand how captive BI policies might change moving forward
3. Understand advantages and disadvantages of potential coverage changes