CALL US TODAY (855) 975-4949

Reduce the Costs of High-Deductible Policies

For those firms that use a large deductible (or buy down/buy back) plan to help reduce their premium for their workers’ compensation, products liability, professional liability, or other line of coverage to protect their business, captive options are ideal for many organizations. Prime candidates are those that take a long-term view toward risk management, possess a stable cash flow, have a strong belief in loss prevention and are willing to share the risk.

You get all the benefits of a captive without the hassle. There is no commitment of funds for capitalization, reduced administrative costs as compared to owned captives, flexibility, underwriting profit and investment income. They can cover programs that are loss sensitive and have less restrictive exit provisions, among other benefits.

A Rent-A-Captive can be structured to keep a separate underwriting account for each insured participant. In some domiciles, these accounts are legally separated or protected, and the terms cell captive or Protected Cell Company (PCC) are used, indicating that each insured’s assets are kept in its own walled-off cell. The assets in one participant’s account may not be used to pay liabilities in another unless the respective participants have entered into an agreement to do so.

RECENT POSTS FROM THE BLOG

Blog
October 7th, 2020
COVID-19 Challenges in Workers’ Compensation Claims

Rising insurance costs have driven many companies to explore alternatives, including self-insured or captive insurance models. In the wake of the coronavirus pandemic, costs associated with workers’ compensation claims have generated increased interest in captives. Captives have evolved over time...

Read More
Blog
September 21st, 2020
Weighing the Pros and Cons of Captives

For many business owners, traditional insurance protections are prohibitively expensive. In some cases, insurers are reluctant to underwrite policies for unusual or high-risk profiles, making traditional insurance all but impossible to obtain. Captive insurance solutions stand out as a viable...

Read More