Captive insurance companies play a pivotal role in providing coverage where it is limited or unavailable in the market, and they are uniquely positioned to weather the storms caused by COVID-19 exclusions in casualty policies in the healthcare liability space.

As capital and surplus can be used to expand underwriting possibilities, captives will lead innovation surrounding coverage for litigation arising from COVID-19 claims. Sublimits and defense costs-only coverage will be used to control, contain, and investigate COVID-19 matters.

As the reinsurance and excess insurance markets continue to actively exclude COVID-19 litigation from coverage policy terms and conditions, captives will be on the forefront of offering control, creativity, and ultimately, resolutions.