Captive solutions are becoming increasingly prevalent to the risk management of various businesses. Commercial insurance companies frequently establish credit rating systems based on market trends instead of loss experience, which can create potential setbacks for companies that are trying to qualify for financial protection. Additionally, many entities cannot obtain traditional coverage because they do not have adequate credit to use for deductibles or they have insufficient loss control. Insurance premiums are also steadily rising, making it difficult for businesses to afford them. In contrast, captives tend to offer lower premiums because they are not designed to contribute to the profit of commercial insurance companies, but rather to simply deliver affordable insurance.
Captive insurance can underwrite a multitude of risks, such as:
- Public liability
- Employers liability
- Product liability
- Professional indemnity
- Property damage
- Employee benefits
It is important that business owners frequently assess the possible risks of their company. The financial market can be unpredictable, so the only way to truly ensure a business entity’s long-term survival is to adequately plan around these areas of vulnerability. Meeting with an expert that specializes in captive solutions and risk management techniques is one of the best ways to calculate a company’s potential exposures. There are multiple assessments, appraisals and analyses that are specifically designed to provide corporate professionals with in-depth evaluations of their business, as well as protection against all conceivable future calamities.