What does Series Business Unit mean? Read on to discover the definition & meaning of the term Series Business Unit - to help you better understand the language used in insurance policies.
Series Business Unit
An SBU is a self-governing and protected company formed under the umbrella of a series limited liability company (series LLC), currently permitted in Delaware. The SBU is an independent insurance company capable of issuing policies directly or policies fronted by a commercial insurer to the insured company and third parties. Each SBU has a unique business purpose and an independent tax identification number. The SBU's business purpose, taxpayer election, and coverage offerings are specified. Unlike the protected cells or segregated accounts of rent-a-captives, SBUs have greater flexibility offered by self-governance. An SBU is protected from the financial obligations of other SBUs by Delaware statute.
We hope the you have a better understanding of the meaning of Series Business Unit.