If you’re a business owner, there’s a good chance that you’re paying an insurance company to protect your business against risks and losses just like everybody else. But what many business owners may not know is that there is another option – captive insurance.
Captive insurance is a special-purpose insurance company created, owned, and managed by the owners of a business to insure their business is safe from various risks.
For a company and its owner(s), controlling the insurance has plenty of benefits, and it allows for more tailor-made policies that can truly address the needs of the venture while cutting down overhead costs from eliminating the middlemen.
Captive insurance companies aren’t new at all. In fact, large corporations have been enjoying the benefits of handling their own insurance for many years now. Most smaller businesses, however, have been oblivious to their existence and the few who do know have a minimal idea about how they operate.
Forming your own captive insurance company can provide you with protection against risks that is unavailable in the commercial market or that traditional insurance companies deem too costly to include in their coverage. Most importantly, you can use the profits of your unused premiums to further your interests instead of having third-party insurers reap the benefits of your hard-earned money.
Overall, your captive insurance company can deliver better service to your business than commercial insurers could. However, a leap of this magnitude requires a lot of thought and careful evaluation.
At Bennett and Porter, our team is packed with insurance advisors who are experts on captive insurance and all that it entails. We can even help you set up your own once you’ve decided!
If you think that captive insurance may be a good fit for your business, give us a call!