A captive insurance company is making quite a positive impact on the business world and their employees; businesses that are becoming active with it are: transport, construction, consulting services, real estate development, healthcare, engineering and hospitality. These are only a few that are seeing the bright light at the end of the tunnel. So if you would like to become more educated on the subject then contact a captive insurance manager for more information.
With the economy failing and still getting worse daily it would be in your best interest if your company manager thought about forming a “captive”. You would be able to save on premium costs, as well as increase cash flow. If you became the captive insurer you also would have almost total control over claims for your company. If you remove the other insurance companies out of the equation, you will improve your gain because you will be your own captive manager.
There are many package deals that insurance companies usually offer you. These may no be changed; they are kind of well, a package deal. Most of the things that they have are not particular to your own specifications, but you still have to get the policy because, quite simply, they do have what you need. Captive insurance only gives you you what you need and nothing more. So, basically, the costs will be more efficient and based purely on “need” not greed.
Through the years this companies have been on the rise. Today, it is possible for middle sized companies to become involved and utilize their own captive for their business. This will be able to save the company a lot of money over time with this type of alternative risk strategy. If you become your own captive insurer you may be able to cover claims for up to $250,000 dollars.
The dollar amount may be higher so that is when a fronting company will be needed; they can take care of the claim when the denomination is over that amount. Another thing is that some states require a licensing insurance company to meet the claim. Here is where a fronting company will serve you well. You will be able to collect premiums, pay claims and issue policies when you are a captive for your own company.