Michael Maglaras, principal of Michael Maglaras & Company, says that we have been insuring bad behavior in the commercial insurance market and in captive insurers for many decades. Concerning sexual misconduct, sexual abuse, and sexual intimidation, how will captive insurers address the sexual misconduct era in which we live?

Some would argue that—at this moment—sexual abuse, sexual molestation, and sexual intimidation are almost, if not entirely, uninsurable.

This is hard to explain to a captive owner who must insure assets, protect a board of directors, and protect innocent parties. Mr. Maglaras believes that as we begin to see a tightening of terms and conditions and as this issue continually stays in the press, that captives will have to respond and will respond.

Captives are so adept at taking care of transactional issues, they now must become increasingly adept at insuring societal issues.