Businessmen

CAPTIVE INSURANCE

THE MIDDLE MARKET SOLUTION

 

CAPTIVE STRUCTURE

A captive is an insurance company that insures the risks of its owner, affiliated businesses, or a group of companies. It issues policies, collects premiums, and pays claims.
 

MOTIVATING FACTORS

THE PURPOSES OF FORMING A CAPTIVE INCLUDE:

 

WORKERS' COMPENSATION

A business with large workers' compensation or general liability deductable can use a captivate establish a self-insured retention (SIR) layer for that risk,  immediately recognizing a tax benefit. The premiums paid to the large insurance carrier are reduced because the deductible is collateralized.

 


EMPLOYEE BENEFITS

Captives can ensure employee benefits such as health insurance, executive retirement programs, group term life and long-term disability, achieving substantial cost reductions to the business. Moreover, the business immediately deduct an insurance reserve for future expenses, providing current tax savings to the business.

 
 

WARRANTY

Captives can reinsure the product or service warranty risks of the business or association.

 

GENERAL LIABILITY/AUTO LIABILTY

Captives can reduce (in whole or in part) expensive general liability or auto liability insurance. In other cases, the captive can write the deductible layer of insurance. Captives can cover any type of traditional insurance.

 

 

ASSOCIATION

An industry, franchise or association with general or specialized risk can form an association captive for underwriting profits, investment income and claims control.
Marble Surface

MOTIVATING FACTORS

THE PURPOSES OF FORMING A CAPTIVE INCLUDE:
 
Glass Buildings

Risk

Management

Solutions

Specialized Coverage

Specialized coverage, such as business interruption insurance or comprehensive directors and officers coverage, can be obtained at reasonable and consistent rates.

Creditors & Finance

Creditors and Finance organizations can underwrite creditor/insured coverage such as:

  • Collateral Protection

  • Vender single interest

  • Other credit risks and additional self-insured risk.

Construction

Captives can cover expensive construction defect, mold, and other construction-related general liability risks, thereby improving cash flow and profitability of the developer.

Medical Malpractice

Hospitals and physician groups can self insure all or part of medical malpractice risks, obtaining underwriting profit, and achieving better loss and claims control.

Property Coverage

Large property holders can use a captive for completed coverage or differing layers of property coverage, thereby reducing overall insurance costs.

Non-Traditional Lines

Captives excel at writing non-traditional insurance coverages, including:  equipment maintenance warranty, credit life and disability, employment practices, credit risk, post-retirement medical benefits, private mortgage insurance, extended-service warranty, voluntary employee benefits such as supplemental life, pollution liability, and medical stop-loss.

 

CONTACT

REINSURANCE SPECIALTIES

OUR ADDRESS

4334 NW Expressway, OKC, OK 73122

Email: info@resinsurancespecialties.com
Tel:  9405.880.1949

 

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