What is a Captive?
A captive is an insurance company created for the primary purpose of managing the risks of a parent company or closely related businesses.
Corporations, associations, trusts, limited partnerships, limited liability companies and natural persons may own or control captives in over 50 domestic and international jurisdictions.
Benefits of Owning a Captive
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Reduce overhead
Lower costs with an optimal mix of commercial and self insurance.
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Creditor-protected
Create a pool of reserves to pay for deductibles, excess losses, exclusions, copayments and experience rating charges.
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Control your Defense
Achieve control of your risk management program and your litigation defense.
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Gain profit
Participate in profit from “no loss” years.
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Discounted fees
Negotiate fees for franchises, subsidiaries or association members
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Accelerate growth
Rapidly grow your corporate assets for bonding and banking purposes.
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Direct access
Gain accessibility to reinsurance markets.
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Rate Increase Protection
Receive protection from unanticipated rate increases
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Create avenues
Provide the ability for key employees and heirs to earn money to buy the business.
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