Last week, footage of the Chicago Transit Police forcibly removing a United passenger went viral. But just as shocking was United’s response. Their first public statement will go down in public relations history as one of the most tone deaf responses ever. It took the company 24 hours and three attempts before its communications contained the appropriate level of contrition. In the intervening period, their stock price dropped and public perception of the company plummeted.
United is clearly a company that needs to engage in an aggressive PR campaign to right their image with the flying public. If they had a captive insurance company (and, like most Fortune 500 companies, they probably do) and had the foresight to properly underwrite a group of business policies, they would have a reputational restoration policy that would reimburse the parent company for PR expenses and some of the lost income.
This is simply one more real world example where a captive could provide insurance not underwritten by traditional third party carriers.
If you would like to know about Captive Insurance, Join Hale Stewart for a webinar.
Date: May 4
Time: 12:00 Eastern/ 9:00 Pacific
Event Description:
A captive insurance company offers the potential insured a number of benefits, which include:
1.) Filling gaps in current insurance coverage
2.) Giving the insured the ability to control the claims process
3.) Giving the insured the ability to write their own insurance contracts
4.) Providing a degree of asset protection
5.) Creating another corporate profit center
6.) Giving the client a degree of tax mitigation
This presentation will provide the CFP professional with 1-hour of CLE credit. There will be a 20-question test at the end of the program; the attendees must score above a 70 to obtain full credit.
The presentation will be given by F. Hale Stewart of The Law Office of Hale Stewart. He is also co-author of the leading legal text in the area of captive insurance, titled U.S. Captive Insurance Law.
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