Captive Insurance Programs

captive insurance program

Captives are a form of self-insurance where members (typically from a similar industry), form their own self-insured company.  An administrator is hired to set up the domicile, manage claims, and set reserves.  Premiums in excess of the necessary reserves are paid back to the participating members.

Advantages of Captives – Members are able to save on taxes and share in the good experience of their group by managing claims.  Also, any profits are paid back to the members; pricing can be more stable from year to year; and the captive may also tailor some coverages to their specific industry.

Risks - Captives are for businesses with a good loss control program and who are willing (and financially capable) of taking on greater risks.  High claims inside a captive, can result in premiums that are considerably higher than a fully insured plan.  Great care should be taken in choosing a captive program.

Your Specific Needs.  The needs of each business are unique. Contact our professional team for more information.