What type of risks can an industrial insured captive insurance company cover?

An industrial insured captive insurance company is specifically designed to provide coverage not only for the risks of its parent company but also for the risks that are associated with the broader industrial insured group and their affiliates. This structure allows the captive to address and manage the unique risks faced collectively by the members of the group, offering flexibility in coverage that might not be available through traditional insurance markets.

Captive insurance, in this context, serves as a means for industrial companies to gain tailored risk management solutions that reflect the specific needs and exposures of the group rather than being confined to a single parent company’s risks. This can include a variety of liabilities and operational risks unique to the industries represented in the group, enhancing the group's overall risk management strategy.

The focus of the captive insurance is not on standard personal lines, such as motor vehicle risks, since captives are primarily utilized for specialized commercial risks. Additionally, while it's true that insurance directors have authority over what risks may be written, the primary function of an industrial insured captive is to cover the risks pertinent to the group.