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Protect Your Green

Specific Coverage for Your Unique Risk

Emerald Risk Solutions understands that you face a unique set of risks as a hemp business owner and that there are exposures and risks that can’t be covered with traditional insurance.

Things like weather related crop insurance for your outdoor plants, product recall, stock in transit, regulatory investigations can potentially protect you with captive insurance.

Captive Insurance for Your Business

For decades, businesses faced with higher priced or unavailable insurance have turned to captive insurance to meet their risk transfer needs. Captive insurance can provide specialized and tailored coverage that can be hard to obtain in the traditional insurance market.

Instead of paying premiums to a commercial insurance company, with a captive, you pay the premiums to the captive insurance subsidiary. You benefit from the investment of the premiums, as well as the profits.

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Protect Your Product

  • Crop Insurance: Outdoor Crop Protection
  • Storage – Warehouse, Greenhouse
  • Crime, Theft, Employee Dishonesty
  • Business Interruption
  • Drone – Aerial Protection
  • Environmental Impairment Liability
  • Regulatory Actions Defense

Protect Your Property

  • Commercial Property – All Risks
  • Commercial Legal Defense
  • Regulatory Investigation
  • Cyber Risk
  • Drone – Aerial Protection
  • Business Interruption

Protect Yourself

  • Stock Throughput – Inland Transit
  • Business Interruption
  • Employee Theft & Dishonesty
  • Commercial Legal Expense
  • Administrative & Regulatory Actions Defense

831B Captives:

831b Captives are insurance companies owned by small to medium sized businesses in many different industries. Benefits of owning a captive insurance include:

  • (a) the ability to design policy terms and coverage to the specific needs of its owner
  • (b) the ability to insure otherwise uninsurable risks
  • (c) reduced reliance on the commercial insurance market as well as excess and surplus lines insurance
  • (d) retention of underwriting profits and investment income
  • (e) ability to structure risk retention according to the captive owner’s needs.

Consequently, captives would usually not be a good business decision if a business experiences poor claim history. There are always exceptions to this rule. For example, if a business eliminates operations that lead to a long history of claims, a captive could make sense. Businesses who take risk management actions which lead to a significant reduction in claims over a significant amount of time should consider captives.

Our expert captive management team has decades of combined captive experience. Thus, our captive owners confidently enjoy lower risk, creating a profit center and potential tax benefits.

Captives are a good business decision when a business practices good risk management. This means that a business is proactive which means they find ways to prevent insurance claims. Proactive businesses work diligently to prevent insurance claims. When claims occur, the proactive business reviews what happened and revises their risk management procedures. Not all insurance claims are avoidable, however reducing the severity of the loss can be accomplished. Today, Physicians are trained to admit their mistakes and offer their apology for their mistake without fear of increasing the size of the settlement judgement. Finally, a business who decides to discontinue a part of their business that causes claims could benefit from a Captive Structure

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There are usually 5 steps in Captive Formation that are listed below. The order of the first 3 steps can vary depending on the business who is seeking a captive solution:

Step 1: Retain a Captive Manager after careful due diligence
Step 2: Risk assessment via Feasibility Study
Step 3: Captive Structure selection which best meets a business’s needs.
Step 4: Select Domicile
Step 5: Prepare and submit Captive Application to domicile
Most businesses interested in Captives have better than average losses, which means the 3rd party insurance company made a significant profit on those policies.

Now that a captive manager is selected, it is time conduct a feasibility study.

Actuaries conduct the study which identifies and measures risk of a business. This takes into account claims history from commercial insurance policies. Most businesses seeking Captives have better than average losses, which means the 3rd party insurance company made a significant profit on those policies. Domicile refers to the state or country which has jurisdiction, based on many factors. Consider the state department of insurance the boss of the captive. Some states are more captive friendly than others.

Finally, the captive manager prepares and submits captive insurance applications to the Department of Insurance for the domicile. Captive management refers to the day to day operations which include underwriting, compliance, claims processing, along with regulatory and tax changes.

Some Managers offer complete suites of services, while others offer an ala carte menu. Since Captive Managers serve as the Captain of the captive ship, it is important to find the right one.

Let Us Help You!

For over a decade, Emerald Risk Solutions and Management Services International (MSI) have provided alternative risk solutions, as well as formation and management services to a wide range of companies in various industries.

Raleigh Office

7000 Six Forks Road, Suite 104, Raleigh, NC, 27615

Chicago Office

1000 E. Woodfield Road Suite 233 Schaumburg, IL 60173

Puerto Rico Office

268 Ponce de Leon Avenue Suite 1121, San Juan, PR 00918
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