What Pandemic? Wimbledon Tennis Captive Pays Off Big

For a $2 million annual premium, the Association collected last month $141 million when the 2020 tournament was canceled as a result of the Coronavirus pandemic, otherwise leaving the Association devoid of ticket sales and television revenue…………………..

Wimbledon Tennis Collects on $141 Million Business Interruption Policy

One of the principal advantages of a captive insurance program is the ability to design custom coverages to meet specific client needs.

The All England Lawn Tennis Association – Wimbledon – was concerned about risks such as a SARs-type pandemic or the Queen’s death disrupting its June/July 2020 tournament.  As such, its risk committee obtained coverage – not available in the standard insurance markets – that provided the Association-specific coverage for these events.

For a $2 million annual premium, the Association collected last month $141 million when the 2020 tournament was canceled as a result of the Coronavirus pandemic, otherwise leaving the Association devoid of ticket sales and television revenue.  This $141 million softened the blow. Get the story.

Pandemics have always been a recurring risk dating back to the Spanish Flu (1918-1920) right up to the more recent Avian (bird) flu, SARs, and now, COVID-19.

Commercial policies, almost without exception, exclude these types of losses, leaving businesses having to rely on captive insurance programs.  Limited or excluded coverages were seen in the past with pollution, aircraft hijackings, terrorism risks, and more recently, sexual harassment (the “#MeToo” movement), and premises mold coverages. Insureds have a choice: either risk the survival of the business or use a captive arrangement to lessen the blow.

Capstone clients can craft policies with COVID-19 coverage drawing from among the following coverages:

Regulatory Changes

Coverage to protect the insured against compliance and extra expenses incurred resulting from various regulatory changes adversely impacting the insured’s normal business operations from changes in government regulations.

Catastrophic Business Interruption

Coverage to protect insureds for business interruption and extra expenses that result from a described range of natural events such as earthquake, tsunami, flood, hurricane, windstorm, tornado, power interruption, snow/hailstorm, and disease. Pandemic policy riders are also available.

Capstone stands ready to assist our clients in designing a captive insurance program providing custom-crafted solutions for businesses, for once thought unimaginable events.

Please contact Lance McNeel, John Williamson, or Clete Thompson if you’d like to discuss further.

For more information on Capstone’s 22-year work history in forming and operating captives, please contact:

Capstone Associated Services, Ltd.
800.500.3190
info@capstoneassociated.com

If you would like one of our attorneys to contact you regarding a pending captive insurance tax controversy, please contact:
About Capstone

Capstone Associated Services, Ltd. (www.CapstoneAssociated.com) is the most integrated and comprehensive outsourced provider of captive insurance services for the middle market.  In association with The Feldman Law Firm LLP (www.Feldlaw.com), Capstone administers captive property & casualty insurance companies that provide alternative risk financing throughout the U.S.

Now in its 22nd year, Capstone leverages an award-winning, multidisciplinary approach to captive planning, providing turnkey captive services to businesses with uninsured or underinsured risks. Capstone has led more than 200 distinct captive formations, excluding cell companies, and 57 tax matters to successful conclusions.

Capstone’s attorney-led team goes beyond risk management and serves as partners in captive formation and operations and in risk management. The team’s expertise spans the whole range of captives operating under IRC Sections 831(a), 831(b) and 501(c)(15).

Capstone’s staff includes Chartered Property & Casualty Underwriters, Associates in Risk Management, accountants and administrators, risk managers, P&C professionals, in addition to the affiliated law firm’s tax, corporate, and financing lawyers, outside CPAs, and actuaries. Together, this team offers middle-market companies the most comprehensive risk planning solution available.

To learn more about how alternative risk planning and captive insurance can protect your business from uninsured risks, please contact us at 800.500.3190 or visit www.CapstoneAssociated.com.

NOTICE: To the extent this communication contains any statement of tax advice, such statement is not intended or written to be used, and cannot be used, by any person for the purpose of, or as the basis for, avoiding tax penalties that may be imposed by the Internal Revenue Service. Unless expressly stated otherwise in writing, this communication is not intended to be used, and cannot be used, for the purpose of promoting, marketing, or recommending to another party any matter addressed in this communication.

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