Article by Patrick McCann on “Captive Insurance May Help In A Pandemic, But Caution Is Key”
In an article published on July 2, 2020 in Law360, Atlanta-based Associate Patrick McCann discusses the renewed focus on using captive insurance companies as part of an alternative risk management strategy for small businesses amid the COVID-19 pandemic.
“Captive insurance companies can be an important component in a company's overall risk management program designed to complement the existing commercial insurance coverages and address any gaps in those coverages,” explains McCann. “A captive insurance company is able to provide coverage for areas that are otherwise unavailable in the commercial insurance market — like a business interruption caused by a virus.”
He further explained that the COVID-19 pandemic has highlighted the significant gaps in protection offered by traditional commercial property and casualty insurance companies and demonstrated why Congress has continued to encourage the use of small captive insurance companies as an alternative risk management strategy.
Subscribers to Law360 may access the full article here.