Captive insurance is the practice of a parent group, or groups, creating a private insurance company to cover the needs for itself and its subsidiaries. This type of insurance can offer many benefits and risks to the companies involved, so talking to a consultant to go over the specifics for your group can give you the best picture of your individual case. Many consultant companies in the captive insurance industry can also help you with the paperwork involved in creating and managing the captive as well as offer other benefits.
One of the benefits you can get from captive insurance is that any dividends from a claim-free year can be put back into the group in the form of returns after retirement or dividends on a yearly basis. Other benefits include lower fees and coverage that better fits your needs. You can go over whether these benefits will work for your company type by talking to a captive insurance consulting firm and even get help setting up and managing the group captive.
One of the risks that you can take with captive insurance is that there will not be enough funds to pay a claim if the captive …Read More