Every day, middle market businesses are exposed to tremendous risks for which traditional insurance coverage is not available. For example, consider a manufacturer that serves 50 clients. As is common in middle market enterprises, 10 of those clients account for 80% of the manufacturer’s annual revenue. While the manufacturer could unnoticeably sustain a loss of several of its lower-value clients, losing even one of its top purchasers would have an extreme effect on day-to-day operations.
In such event, unless the manufacturer chooses to proportionally scale down its operations, it needs to continue paying its employees, rent, and other overhead expenses while it replaces the lost revenue. The manufacturer has few options for mitigating this type of risk, as a traditional insurance company will not provide coverage for an unexpected loss of a key customer.
Our enterprise risk program is designed to fill these uninsured gaps in a company’s risk management program. Instead of carrying this risk day-to-day, the manufacturer described above could use one of our captives to insure the risk described, along with other insurable risks that the company faces on a regular basis. This allows the company’s owners and management to plan for a secure future and continue growing their operation.
Please take a moment to review the coverages available in our enterprise risk program and consider how they affect your business. Does your company face a risk that’s not on the list? Contact us to discuss how we can design a program specifically for you.