Join a Nov. 8 Discussion on Forming a Winery Captive for Self-Insurance

On Monday, Nov. 8, 2021, Wine Institute members are invited to attend an online discussion regarding an opportunity to create a Winery Captive made up of industry leaders throughout California’s wine regions, allowing them to finance shared risk and reduce or control premium costs for all parties involved — an insurance company owned and controlled by its policyholders.

According to Morris & Garritano Insurance, along with the firm’s partners at Breckpoint, Inc., captives are a form of self-insurance whereby the insurer is owned wholly by the insured. They were developed to deal with difficult insurance markets, are typically established to meet the unique risk-management needs of the owners or members and have the potential to provide significant tax advantages. Premiums would be paid by all members/owners to a combined self-insured fund from which claims would then be paid up to a certain amount, at which point re-insurance would then take over.

It is typical for captives to have minimum premiums in the $100,000 to $150,000 range annually. For that reason, this meeting will cater to wineries with larger property schedules that are currently paying in excess of $100,000 in premium. To make this project feasible, approximately 20 eligible members are needed to contribute to the captive.

Please note this notice is for information purposes only. Wine Institute is not sponsoring or endorsing this online discussion or proposal.