You pay money into your business insurance and it seems like put into it than you get out of it. You would appreciate a solution that seemed to give back to you as much as you submitted into it. Captive insurance has an ominous name but is a group of insured clients that invest in their own insurance. While they do cover their own risks, they also have equal decision making with other members and reap in the profits when they come in. Here are some reasons you might want to join a captive insurance group.
Share In The Money
In this particular part of the insurance industry, group captives cover their own risks as they buy into the group. While there is a gamble with this, there is also a great payoff. As a co-owner of your captive insurance group, you are rewarded with the profits from the venture. You also see exactly what insurance the collective is covering and are able to have input into every aspect of the captive.
Why Captives Are Popular
Captive groups are going in popularity with businesses for several reasons. Being part of a captive allows for better coverage than traditional companies can provide. Many companies struggle with the constant fluctuation of price in policies with an insurance provider for coverage that doesn’t entirely work for them. Being part of a captive allows for more customization for your and your partners’ businesses. Also, captives keep the price of coverage down across the board and keeps it that way for longer lengths of time making operating costs for your own company manageable. Due to the fact you will be handling your own loss through the captive, it can make you more cognizant of what happens in your own building so that you will have to pay out less and receive more profits from the captive.