Karen J. Golden, director of risk management for Whitman Corp., a holding company for Pepsi Bottling Co., spoke at the 15th annual Vermont Captive Insurance Association Conference. The only thing to consider is whether you snow-ski or scuba dive. It's a reality. Golden said that captives provide control by isolating funds for losses. She added that since her company has a heavy cash business, it wants to pay for its own losses.
Captives also give control by allowing companies to manage claims and litigation.
It also allows them to vigorously defend those claims they choose to defend. Choosing the right captive domicile is also important. Much debate has centered on the choices of Bermuda, Vermont or Hawaii. Kathryn M. Boucher, a certified public accountant for Marsh Management Services Inc. and a speaker at the conference, said Vermont has made more of an effort than any other domicile by keeping legislation up to date and focused on the evolving captive industry. For example, Whitman, before initiating a tax-free redomestication to Vermont, had been domiciled in Bermuda for more than 20 years.