Burlington Coat Factory has launched Florence Insurance Co. to manage risks associated with the self-funded health care plan for its 37,000 employees, including 4,900 in New Jersey.
Florence is a captive insurance company, or one created by a parent company with a self-insured health care program to mitigate risk. The state’s acting banking and insurance commissioner, Marlene Caride, recently approved its creation by Burlington Coat Factory, a discount clothing company based in Burlington.
Former Gov. Chris Christie signed a bill into law in 2011 allowing the formation of captive insurance companies. Since then, the station has approved the creation of 25 captive insurance companies.