Delaware Business Insurance Update: Enterprise Risk and Captives

In Delaware, 831b captive formations have flourished. This IRS approved entity allows organizations or owners to transfer risk into a financing mechanism different than traditional insurance. But what kind of risk is transferred?  This is where enterprise risk comes in. Specialists look at an organization's over all risk and decide which ones can be financed by the 831b captive. For example, warranties that are provided for by a business is an enterprise risk that can be put into a 831b captive. As more and more of these entities are created, the definition of enterprise risk will continue to expand. With the help of actuaries, the specialists that determine these risk as insurable will also become more in demand. Enterprise risk managment is a growing discipline in commercial insurance and is changing the nature of how organizations handle risk. Until next time be careful out there and know your risks. K
G. Kevin Nemith. Business Insurance, Small Business Insurance, Enterprise Risk Specialist serving Delaware, PA, NJ, MD, and VA.
www.cncinsurance.com
www.bizinsurancetv.org

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