Having insurance will always be great idea not only for individuals but companies as well. Sometimes, however, traditional insurance does not fulfill the specific needs of a certain company. There’s also the fact that companies have to watch traditional insurance companies collect premiums from them and invest money en route to increasing profitability.
If traditional insurance companies are making a lot of money for themselves for accepting catastrophic risks, why don’t the companies—who are already faced with the ever-increasing cost of Workers’ Compensation and Liability insurance coverage—take up the risks themselves by just creating a licensed insurance company to provide its own coverage, and therefore get the ability to convert insurance premiums into a retained asset?
That is where the idea of a captive insurance company comes in, and the benefits are numerous.
Captive insurance companies give a company the ability to limit risk and turn an expense into a program that generates profits. Instead of a traditional insurance company enjoying profits from unused premiums and the income they generate, all that money will be returned to the company for it to enjoy.
Here at Bennett & Porter would be happy to help you understand all its pros and cons of captive insurance and assist you in starting your own policy. The Bennett & Porter team is loaded with Insurance Advisors who understand the ins and outs of captive insurance like the back of their hand. Talk to one of them now by calling 480-212-1150 and find out if a captive insurance company is a right fit for your business.