If your company has financial capital that it wants to dedicate to insuring its subsidiaries, membership or clients rather than spending it on commercial insurance from an insurance company, a captive insurance program could be right for you.
There are multiple types of captive insurance companies, including a Single-Parent Captive, which insures a conglomerate’s own subsidiaries; an Association Captive, which is owned by a trade group that insures its members; a Group Captive that is owned by multiple companies and commonly targets a common risk; an Agency Captive that is owned by an insurance agency to provide reinsurance to clients; and a Rent-a-Captive, which provides captive services and coverage for a fee to another company—often one that is too small to create its own captive. There are other captive-like configurations that we can discuss if this type of risk program is of interest to you.
Connecticut is home to many captive insurance organizations, simply referred to as “captives,” and Evans, Pires & Leonard is qualified to assist you in setting one up and managing it.
Your company can also establish a captive offshore, which is popular with smaller companies since offshore costs are frequently lower than U.S. domiciles.
Under a captive insurance structure, your subsidiaries, members or clients pay premiums for their insurance coverage to your captive instead of to an outside insurer. Using a captive structure, you can purchase reinsurance directly, which can save on commission and premium costs. Your premiums will be calculated on your loss history instead of overall industry loss costs, meaning good risk management programs can yield big savings. You can also tailor coverage to the particular needs of each policyholder, making coverage more flexible than you might find on the open market.
There are cash flow benefits, claims payment advantages, and improved accessibility with captives; plus, you can be sure you won’t be cancelled since you control the entire program of insurance. Your Evans, Pires & Leonard advisor can show you the pros and cons of captive insurance for your organization and get you started on the right path to full and stable coverage for your needs.
The tax advantages, cash and control improvements, flexibility and accessibility make captive insurance programs very attractive to certain organizations.
With Evans, Pires & Leonard, you’re not a policy to us. We create a relationship with our customers through earned trust, integrity, experience, and knowledge. Give us a call at 888.776.2932 or email us, or if you prefer fill out and return the convenient form on this page. One of our professionals will contact you to discuss your insurance needs and our alternative solutions in helping to protect you. Since 1967, we have been serving the communities from Tolland to Glastonbury to Portland and Old Saybrook.
