Is captive insurance right for your business?
If you’re a business owner with an entrepreneurial spirit in good financial standing, you may qualify to insure your business using a captive. Captives are essentially a form of self-insurance that you either participate in alone or with other groups of businesses. They are a great way for you to better manage your insurance costs and improve your bottom line.
Because insurance costs in a captive are dependent on your own loss experience and not the experience of the market in general, best in class businesses can earn back the premiums they pay commercial insurers year after year with no losses. Whether you participate in a group or as a single entity captive, you can be confident that only the best, most safety-conscious businesses participate with you.
Captives can be written for property and casualty lines of business including workers’ compensation, auto liability, general liability, professional liability, and select “business enterprise” risk that might not normally be available in the commercial insurance marketplace. Captives can also be used to reduce the impact of large property deductibles associated with flood, earthquake or wind.
Benefits of captive insurance include:
- Access to reinsurance capacity to control insurance costs
- More control on how claims are managed and losses are paid
- Specialized coverages that might otherwise not be available in the commercial insurance marketplace
- Underwriting and pricing flexibility on your insurance program
- Opportunity to earn investment returns on loss reserves
- Controlling administrative costs of your insurance program
If you’re interested in learning how captive insurance may improve your bottom line, contact us for a consultation.