Top 3 Reasons to Look Into Captive Insurance
Insurance is a key consideration for any business. How are you going to fulfill your insurance needs for yourself and others who work at your company? Should you insure through a government plan? Self-insure? In truth, one method of insurance that more people should consider is captive insurance. Essentially, captive insurance involves setting up an insurance company to insure the parent company that created it. What makes it so special? Let’s go over the top three reasons to look into captive insurance.
1. Cost Benefits
Captive insurance can have several advantages when it comes to cost. For one, taxes paid on all sorts of things, from income, gift, and more, are generally paid at a lower rate than going directly through the parent company. Not only that, operating costs for your business will be reduced overall since you won’t be paying a major insurance company for their services. You also save on insurance premiums, as you’re essentially paying them to yourself.
2. Flexibility in What’s Insured
Unlike third party insurance plans, you decide what’s insured in a captive insurance plan. This can be a huge benefit for certain types of businesses since it allows them to insurance high cost assets that would otherwise not be covered by more traditional plans. Even things considered uninsurable can be covered depending on how the plan is set up.
3. Greater Control of Claims
Insurance companies have a habit of trying to pay you the least amount of money no matter how much they owe you or what you’ve claimed. With a captive insurance plan, though, you have a much larger degree of control over the claims made.
For these and many other reasons, captive insurance is a great choice for business of many different sizes and functions. If you’re interested in captive insurance and would like some help taking the necessary steps to go through with it, get in contact with a captive insurance consulting firm to get you on your way.