What Does a Captive Insurance Policy Do?
Forming a captive insurance company is a way to cover gaps, exclusions, and deductibles in existing insurance policies. In addition, a captive can also issue tailored policies to provide protection against risks which may not be readily available or too costly with typical commercial policies. See what captives cover. Entity structure and favorable tax exemptions create additional wealth for the business owner.
When establishing your own captive insurance solution, you add additional coverage for risk exposures that are specific to your business. Additionally, costs associated with high premiums such as overhead for marketing, advertising, commissions paid to agents, and other overhead related to running an insurance company are reduced if not eliminated. As a result, your captive may markedly reduce your existing commercial insurance costs and provide more coverage.