New Jersey’s Department of Banking and Insurance establishes captive insurer

The State of New Jersey’s Department of Banking and Insurance has set up an onshore captive insurance company to insure underground storage tanks in New Jersey.

With the certificate of approval, Founders Indemnity is now licensed to write insurance policies for underground storage tank owners in New Jersey in the areas of liability insurance and property and casualty insurance.

Captive insurance companies are established with the specific objective of financing risks from their owners or participants. Some captives insure just one company while others, like Founders, insure multiple companies within one industry.

Law firm Fox Rothschild advised on the formation of the captive.