You take control.
For midsize to large companies, there are alternatives to the traditional purchase of insurance to finance risk. You may find that there are areas of substantial risk for your company where insurance is not commercially available in the marketplace. If your company has demonstrated a long history of superior safety, the ability to control risks, and is able to avoid third-party liability claims, you may find risk financing alternatives attractive.
Performance Based Insurance has been around for more than half a decade. Most Fortune 500 and Fortune 100 companies use Performance Based Insurance to manage their risks. You can have the option to cut your premiums in half, literally… You are in control of the profits instead of standard markets keeping them. You are able to receive what it rightfully yours, especially since you earned it!
Such risk transferring alternatives come in many forms such as:
A captive is a property and casualty insurance company that is set up to insure the risks of an actual operating business. You, as the business owner, will own the insurance company and have control over the money that is invested inside of it.
Owning a captive insurance company allows for your business to mitigate non-insured risk exposure that may not be available with your current commercial insurer, while also allowing your business to capture the underwriting profits on the premiums paid to the insurance company.
While there can be significant tax benefits to owning a captive insurance company, tax benefits should not be the primary reason for establishing a captive insurance company. Risk mitigation and risk management must be the primary purpose of establishing a captive insurance company. There musts be real risks that can be insured.
Captives can be suited for all industry and business types as long as there is insurable risk. Captive Insurance Group performs a very granular analysis of your business and provides a preliminary feasibility analysis to determine whether or not the captive program would work for your company’s needs. This analysis is free of charge as we want to assure that you have a deep understanding of the captive program before spending a dollar.