Alternative Risk Strategies Closes $10 Million D&O Captive Insurance Arrangement for Large Cannabis Client
Sep 20, 2021
BOCA RATON, FL. / DENVER, CO., SEPTEMBER 20, 2021 – Alternative Risk Strategies (“ARS”), a leading risk management consulting company offering strategies for addressing expensive and hard to place insurance risks, announced today the implementation of a captive insurance arrangement for a large, vertically integrated cannabis company. As part of that arrangement, ARS successfully secured the placement of USD$10 million of Directors & Officers (“D&O”) captive insurance coverage.
A captive is essentially an insurance company set up by its business owners to insure emerging and unique market conditions and avoid, when available, overpriced traditional insurance policies. The captive insurance program offered by ARS (“ARS Captive Program”) is designed to give its clients a competitive advantage in the marketplace in terms of both cost of coverage and the ability to afford larger amounts of D&O insurance coverage at significantly lower rates than available in traditional commercial insurance markets, resulting in cannabis companies being able to attract and retain key management talent, lower their costs, improve cash flow and accumulate cash and other assets.
"We are pleased to have designed and implemented this effective captive insurance solution for our client in the cannabis industry,” stated Eric Rahn, Managing Director, ARS. “The interest in our Captive Program has been remarkable, but was not unexpected, as cannabis companies struggle to find affordable and adequate levels of insurance for their business needs and realize attracting and retaining management talent is related to adequate insurance.”
The ARS Captive Program is part of an arrangement that ARS has with an AM Best "A" rated insurer, which provides ARS and its clients with maximum flexibility in designing and insuring their captives in high-risk and highly-regulated industries, such as cannabis, construction and transportation.
To learn more about ARS Captive Solutions and how it can benefit your cannabis business, contact Eric Rahn at firstname.lastname@example.org | (954)-790-6604 or John Magliana at email@example.com | (503) 784-3767.
About Alternative Risk Strategies
ARS specializes in custom and hard to place insurance risks. ARS provides traditional and alternative insurance risk strategies and solutions, including Captive Insurance Company Management Services, to clients domestically and internationally. Our brokers have deep experience working with businesses in highly regulated industries and can provide tailored solutions to meet your specific needs. Our goal is to provide you with long-term insurance solutions that bring greater certainty to your risk management and compliance operations. ARS is neither a law firm nor an accounting firm. We are your trusted Captive advisers. For more information, visit https://www.altrisks.com/.
Click here to read the full article in Captive Insurance Times.