Alternative Risk Transfer

Businesses that previously chose a high self‐insured retention or other participating insurance program for workers compensation, product liability, or other long‐tail exposures, may discover over time that the accumulated liability on their balance sheet and the annual cost to fund letters of credit or trust accounts is increasingly significant and burdensome.

This negatively impacts cash flow & financial flexibility, plus it impairs the owner’s (or shareholders’) ability to sell or transfer the company to new owners at a fair price.

Sullivan Brokers has the expertise and market relationships to affect a complete risk transfer to mitigate the negative financial impact and totally eliminate it from the firm’s balance sheet via a “novation” of all prior liabilities.

This is very different from a traditional Loss Portfolio Transfer (LPT) where the business purchase of a specific limit, but still retains the liability for all future costs (see “What is Collateral Release” under Resources).