There are many reasons why a business may choose to utilize an insurance captive. Owning and controlling your own insurance company may be intimidating for business owners, but there are many situations in which captive insurance provides greater benefits than standard insurance.
Covering Unusual Risks
In addition to providing standard coverage for things like healthcare, workers’ compensation, and auto liability, an insurance captive can also help cover more unique risks associated with your business. If your business has unusual risks or has had difficulty finding coverage for certain needs, captive insurance can help fill those gaps.
Providing Greater Control
When you are in full control of your own insurance company, you have greater decision-making power and can better tailor coverage to fit your specific needs. You are able to participate in more facets of the insurance process, have more flexibility in doing so, and can save money by developing your own insurance that covers only what you need.
Developing an insurance captive for your business can be beneficial in many ways. It allows you to fully cover all risks, including those that are unique to your business or traditionally difficult to acquire coverage for. At the same time, it allows you more control and greater flexibility, meaning you never pay for what you don’t need.