Article

Standard Market Challenges

In the traditional commercial market, the insured was unable to procure a dedicated human trafficking policy on a standalone basis, despite actively seeking options through standard carriers and program markets. Capacity, appetite, and form limitations made it difficult to obtain meaningful limits, tailored wording, and a clear response to trafficking‑related events under conventional placements. Captives.Insure stepped into this gap by engineering a bespoke human trafficking solution specifically for the insured, providing purpose‑built coverage where the standard market could not.​

The Solution

Captives.Insure structured the human trafficking program as a standalone, guaranteed‑cost insurance solution, designed from the ground up for a highly sensitive and difficult‑to‑place exposure. Rather than forcing this risk into the existing captive program, they crafted a customized policy form and financing structure that delivers dedicated limits, defined retentions, and a claims‑made trigger aligned with the client’s trafficking exposure profile.​

Under the quotation, the human trafficking coverage is offered with a 2,000,000 occurrence limit and 2,000,000 aggregate, supported by a 100,000 per‑victim retention, with defense costs inside the policy limit. Delivered as a guaranteed‑cost placement, the structure gives the insured price certainty and clean, predictable accounting around a complex class of business that the standard market was unwilling or unable to underwrite on acceptable terms.​

Crucially, Captives.Insure designed the transaction so that the client’s captive is not on the risk for any portion of the human trafficking exposure, including long‑tail development and latent claims. The proposal clearly indicates zero net premium share and zero risk participation for the captive in connection with this coverage, ensuring that no trafficking‑related reserves, IBNR, or adverse development ever flow through the captive’s balance sheet. As a result, the captive is fully insulated from tail liability arising out of human trafficking claims, while the insured still benefits from a bespoke, carefully underwritten insurance solution that could not be obtained on a standalone basis in the standard market.