Should my Company Consider a Captive Insurance Option?

There are several types of Captive insurance products available today.  If you are a Middle Market Customer (premiums over $150,000) it is something you should consider.  Other factors that make you a candidate:

• Good Loss Ratio's over the last 5 years
• Quality Safety programs in place
• Profitable for most of the last few years
• Entrepreneurial - you must risk "some" money to make some money

Typically these coverages can generally be placed in a captive or group captive:

• General Liability
• Workers Compensation
• Commercial Auto
• Commercial Property

You can also consider a Captive for a single line of coverage.  A good example of this is professional liability.  If you pay a high premium for this or have unfavorable terms (deductibles, and payment terms) you may want to consider a captive to insure some or all of this line of coverage or even to insure deductibles.

Comments

[Ian Monteros]

I agree with having an entrepreneurial skills when evaluating a Captive Insurance. We really need to risk money in order to make some money. And to further advance your evaluation in getting an insurance it is a good practice to customize your premiums based on your company's need. It will not just save you time but it will save you a lot of money in the long run as well.