The Pantry has formed a North Carolina-based insurance company that will allow the Cary convenience store chain to self-insure itself against various risks.
Cellarium Insurance Company is a “captive insurance company,” which companies use to protect themselves against workers compensation claims and other risks.
Until recently, companies were prohibited from setting up a captive insurance company in North Carolina. A bill passed last year in the General Assembly lifted the ban.
The bill’s supporters said the change would create jobs and generate tax revenue. Companies pay premiums to their captive insurance company just as they would any other insurer, and they also pay state taxes on those premium dollars.
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The Pantry is the first company to create a captive insurance company in North Carolina this year, and it’s the first such business here to be owned by a publicly traded company.
The Pantry operates 1,538 stores in the 13 states in the Southeast, primarily under the Kangaroo Express brand.