August 30, 2017
Houston-based Capstone Associated Services, Ltd., one of the largest and oldest captive managers in the U.S. serving the mid-market, reports that it is still up and operating, despite catastrophe on the Gulf Coast. “We are fortunate that our planning and disaster recovery worked without a hitch,” said Stewart A. Feldman, Capstone’s CEO & General Counsel. “We never lost power or internet and our team, spread throughout the greater Houston-area and more generally throughout the U.S., has continued to work without interruption. We are very thankful that despite the widespread devastation that so far, all of our 70-person team from our related group of companies have reported in without any significant personal loss. Mobility is still limited given the numerous impassible roads in Houston. Nonetheless, for tens of thousands of people, including some of our clients, this is a disaster of epic proportions.”
Our thoughts go out to those who have been impacted by the storm. We’re hopeful for a quick and speedy recovery for Southeast Texas. As the healing process continues and as we step back and gain perspective on these events, questions that businesses should include are, ‘Where is the money coming from to pay for the damage?’ and ‘Is my business properly insured for a major weather-related event?’”
Capstone’s Vice President of Insurance Operations, David Overbeck, CPCU, comments: “The events of the last week underscore the need for a comprehensive insurance program, which has an alternative risk/captive program as one of its key components. Solely relying on the limited Federal flood program and few, limited conventional market alternatives leaves most businesses with large gaps in critical risk areas. How many risk management professionals would have objected to a coverage exclusion of an 800-year flood with over 40 inches of rain in a few days? This is why a broad-based, enterprise risk management program, with few exclusions is necessary.”
Mr. Overbeck is one of five CPCUs at Capstone with experience totaling more than a century.
Lance McNeel, CPCU, himself thirty-year insurance professional, and a Capstone Vice President commented: “The commercial markets do not typically sell broad based business interruption (BI) and property policies that respond to all scenarios. Contingent BI…