A captive is an insurance program designed to insure the specialized risks of its members.
Think of a captive as your own insurance program designed around your particular risks where
you control your insurance destiny. You pay premium into your program, and should you have little
or no losses, a portion of the premium may be returned to you along with investment income.
In the traditional insurance market you pay premium to an insurance company in return for insurance protection.
If you insure your risk through a captive, however, you take on a portion of the risk, and share the risk with
the insurance company and other members, and your risk and reward is commensurate with your ability to manage
your losses. Therefore, captives work best with companies that typically perform better than their peers when
it comes to preventing losses or managing claims.
Captive insurance companies and the alternative risk market have been around for several years and have become
increasingly popular in the last few decades.
In order to learn about the many benefits and unique features of captive insurance,
please give us a call at 1.800.929.1500
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