Preparing for crisis, not complacency captive execs told

At Cayman Captive Forum 2024 this week industry leaders tackled the ever-pressing issue of crisis management, warning against complacency and emphasising the importance of preparation in an unpredictable world.  

The discussion, led by Stuart Miller, partner at Wilson Elser; Michelle Overbay, senior director of Risk Management at Structural Group; and Harry Rhulen, CEO of Rhulen Specialty, highlighted the sobering reality of crises such as workplace violence, transportation accidents, and natural disasters. 

Miller challenged attendees with a stark reality check. “In 2025 how many of you think you'll have a deadly weapon event, a deadly crisis? If you don't believe your company will have [one], you're living in the 'it can't happen to me' syndrome,” he declared. Miller’s remarks underscored the necessity of preparing for crises before they occur, especially as the frequency and severity of incidents rise. 

He pointed to alarming statistics: as of the forum’s second day, there had been 15,561 gun-related deaths in the US in 2024, 474 mass shootings, and over 125,000 workplace injuries. “Crises happen every day,” Miller noted. “The question is not if it will happen to your company, but when.” 

The panel outlined the critical role of having a dedicated crisis management team. Michelle Overbay explained, “A plan provides guidance so you can effectively respond or react to a crisis situation. It relieves anxiety, creates clarity, and identifies roles and responsibilities within your leadership.” 

Overbay detailed the immediate response team, which often includes a director of risk and claims, legal counsel, HR, IT, and safety officers. The presence of a strong brokerage relationship is also vital. “We work very closely with our brokers,” she said, stressing the importance of involving brokers early and ensuring that communications remain strategic and legally sound. 

The team’s role extends beyond immediate crisis response. Rhulen emphasised preventative measures, such as training and test exercises, to prepare employees and management for high-stress situations. “If your employees and senior management haven’t been through test exercises or training, they wind up saying or doing things that exacerbate the crisis,” Rhulen warned. 

The discussion also highlighted the complexities of regulatory investigations in crisis scenarios. Miller pointed to agencies like OSHA and the National Transportation Safety Board (NTSB), noting their considerable authority. “The NTSB answers to nobody but the President of the United States,” he explained. “They don’t need subpoena power. They want your files now, not tomorrow, not next week.” 

Rhulen shared cautionary tales of companies unknowingly jeopardising their data security. In one instance, police officers investigating a case were handed a computer containing CCTV footage. Unfortunately, the computer also contained sensitive client information, which became public due to state laws mandating the release of investigative materials. “Never should any of your members or insureds give information directly to police without counsel,” Rhulen advised. 

Beyond the immediate crisis, the panel stressed the long-term impact on a company’s reputation and litigation risk. “Reputational harm can be harder to recover from than economic losses,” Miller noted. “Will people come back to your business after a disaster? That’s the real question.” 

Litigation fatigue also looms large for companies that mishandle crises. Regulatory findings and poor response measures can pave the way for nuclear verdicts in lawsuits. “If you want to understand how not to respond, read an NTSB report. It’s a roadmap for plaintiffs’ lawyers,” Miller cautioned. 

According to the panel some of the key takeaways for businesses include: 

• Be Proactive, Not Reactive: Waiting for a crisis to happen is a recipe for disaster. Companies must invest in crisis preparation, including response plans and employee training. 
• Assemble a Strong Team: The immediate crisis response team should include legal counsel, risk managers, brokers, and other relevant personnel. 
• Prioritise Legal Oversight: All communications during a crisis should go through legal counsel to maintain privilege and avoid unintended consequences. 
• Understand Regulatory Nuances: Agencies like OSHA and NTSB have overlapping jurisdictions and significant authority. Knowing how to interact with them is crucial. 
• Guard Against Reputational Damage: A poor response can lead to long-term harm, even if the immediate financial impact seems manageable. 

The overarching message of the Cayman Captive Forum 2024 was clear: preparation is not optional. As Rhulen summarised it, “Crises are not a matter of if but when. The better prepared you are, the better you’ll survive—and thrive—afterwards.” 

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