What is captive insurance? A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.
Captive board members should understand several key concepts. Chief among them is liquidity and how it impacts their captive. This article provides a basic primer on liquidity for both new and seasoned board members.
It is important that new captive owners know what to expect from their captive manager to ensure the captive insurance company is running in a profitable manner and in full compliance with the chosen captive domicile's laws and regulations.
The insurance market for the legal cannabis industry is still quite fluid, with changes happening every day. Cannabis businesses are currently unable to obtain adequate and affordable insurance protection in the market, and captive insurance may be able to provide the solution.