What is Captive Insurance

What is a Captive?

A captive insurance company is a form of self-insurance organized for the primary purpose of providing insurance protection to its owners and/or related entities.

For decades, large corporations have established captive insurance arrangements to create a tailored insurance portfolio to fit specific needs. Today, closely held businesses are also taking advantage of the numerous benefits afforded by captive insurance arrangements.

Capitalizing on these benefits, however, does not necessarily mean that your business must expose itself to unwanted or unnecessary risk if structured properly.

Why form a Captive Program?

There are a number of benefits of creating a Captive:

  • Risk protection for your business
  • Reduced insurance costs
  • Stabilized insurance budgets
  • Improved claims handling
  • Creation of profit center
  • Negotiation tool with commercial market
  • Access to reinsurance market
  • Asset protection

Are you a good fit for Captive Insurance?

A number of businesses may find significant value in considering captive insurance.

Here are some criteria that suggest a good fit for your business:

  • Significant underinsured or uninsured risks
  • Paying high 3rd party insurance premiums
  • Good loss experience
  • Financially secure parent

While just about any business with underinsured or uninsured risks qualifies, we find that the following types of businesses are prime candidates: medical practices, contractors, real estate developers, manufacturers, and professional service firms.

Call us at 412-802-2600 for a free consultation to find out whether Captive Insurance is right for you and your business.