January 2021 Edition
I hope you had a Happy New Year and are excited about 2021.

As you can see from the subject line and our first article below, commercial insurance rates are up. We are looking at increases of 10-75% based on different lines. Forecasters see this trend staying around, but there are ways we can help.

As we start the new year, now is an excellent time to review your business plan and let us show you how you might benefit from implementing a Captive Insurance company. 

If you have any questions about implementing a Captive, call me directly or visit our Captive 101 section online by Clicking Here

Happy New Year!!!

Larry Papola
Lawrence J. Papola, Jr.
Insurance Rates Increasing
The rise in insurance rates is good news for specialty captives.

Commercial insurance markets are seeing rate increases, capacity reductions and tighter underwriter scrutiny as an already hardening market reacts to the impacts of COVID-19-related losses, according to a report on December 14th from USI Insurance Services LLC.

Our Specialty Cell solution may be your answer!
What is a Specialty Cell Captive?

A private insurance solution designed to provide customizable coverage options for unique or difficult exposures business owners face. This type of captive can provide competitive and affordable alternatives to the commercial insurance market for P&C producers and their clients.
Designed to Address Difficult Insurance Challenges
We have developed game changing risk management programs which can be tailored to meet your client’s specific program needs. Our low frequency-high severity policy form provides considerable design flexibility, offering potential solutions for a wide variety of hard market challenges, including the following:
  • An increase in commercial premiums – where renewal prices may be significantly greater than prior years.
  • Your client’s loss history warrants more favorable renewal pricing.
  • An Increase in deductible limits. For instance, is the existing commercial carrier requiring your client to significantly increase the deductible on their policies? Are self-insured retention layers increasing to unreasonable levels?
  • Introduction of new policy exclusions – is a renewal coverage contingent upon acceptance of a coverage exclusion for exposures previously covered?
  • Imposition of sub-limit caps – renewal policies may present coverage limitations which are more stringent than prior coverage.
  • Carrier non-renewal – if your client is facing a non-renewal of coverage or excess layers; coverage may be unavailable or subject to significant premium increases.
  • Clients that need customizable coverages – loss of key customer, loss of key supplier, legislative/regulatory changes and business interruption, to name a few.
  • The inability to obtain specialized types of coverage from commercial third-party insurers.
This program can provide protection against risks which prove to be too costly in commercial markets or may be generally unavailable.
Have an opportunity you wish to discuss? Please contact me today:
The Gold Standard of the South: Capturing Tennessee’s Domicile Milestones
Captive insurance companies have found a receptive home in Tennessee - beginning in 1978, as one of the first states to adopt captive legislation, to 2011 when our state’s leaders modernized the state’s captive laws. Tennessee is experiencing exceptional growth due to these prior and continued efforts. Before updating our captive legislation, Tennessee had licensed only two captive insurance companies. Since then, and as of December 2020, Tennessee has licensed 211 captive insurance companies and 489 cell captives – for a total of 700 risk bearing entities.
Captive Claim Highlight
Client Profile
Industry: Legal
Specialty: Law firm specializing in trusts & estate planning
Location: Delaware
Claim Information
Description: One of our insureds lost two key employees who both contributed to significant revenue production. Additionally, they managed a specialized practice that was difficult to replace. Through their Captive's Actual Net Loss Insurance Policy's "Loss of Key Employee" coverage, the Insured was able to recoup some of the expenses and lost net income associated with the replacement of the employees. 
Line of Coverage: Loss of Key Employee
This exposure was elected for coverage by the client under their Captive Policy. This resulted in a claim payment amount of approximately $1,800,000.
*Please note that each claim will undergo an independent investigation and thorough review process. Various components specific to the claim at hand will be assessed thoroughly to determine if the loss is covered by the policy.
January 2021 Calendar
Jan 1: New Year’s Day
Jan 6: Epiphany
Jan 9: Law Enforcement Appreciation
Jan 18: MLK Jr. Day
Jan 19: National Popcorn Day
Jan 20: Inauguration Day
Jan 23: National Pie Day
January is Observed as:
National Mentoring Month
National Glaucoma Awareness
National Blood Donor Month
Get Your Insurance Quotes From The:
Insurance Experts provides expert knowledge and assistance to individuals, families, and business owners who are making decisions about the proper insurance coverage for their needs. We’re here to help you cover losses you shouldn’t have to on your own.

Let our team of experts guide you through the daunting task of selecting the right insurance coverage for you or your business:
  • Life
  • Disability
  • Long-Term Care
  • Business
  • Personal
  • Captive
  • More...
485 Underhill Blvd.
Suite 101
Syosset, NY 11791

Office: 1-833-US-CAPTIVE
Fax: 888-929-6565