What is a Captive?
A captive is a property and casualty insurance company that is set up to insure the risks of an actual operating business. You, as the business owner, will own the insurance company and have control over the money that is invested inside of it.
What are the benefits of owning a captive insurance company?

Owning a captive insurance company allows for your business to mitigate non-insured risk exposure that may not be available with your current commercial insurer, while also allowing your business to capture the underwriting profits on the premiums paid to the insurance company.

While there can be significant tax benefits to owning a captive insurance company, tax benefits should not be the primary reason for establishing a captive insurance company. Risk mitigation and risk management must be the primary purpose of establishing a captive insurance company. There musts be real risks that can be insured.

What types of coverage can be put into a captive insurance program?

Captive Insurance Group works with you directly to include the proper coverage in your captive insurance program that best fits the risk mitigation plan of your business. Captive policies are designed to function as a “backstop” for your existing commercial coverage, cover high deductibles, exclusions, as well as provide coverage for risks where there is not an existing market with affordable coverage. Below is a sampling of coverages that could be included in your captive program:

  • Breach of Data
  • Collection Risk
  • Environmental Liability
  • Fiduciary Liability
  • Intellectual Property
  • Loss of Key Contract
  • Loss of Key Customer
  • Loss of Key Employee
  • Loss of Key Referral Source
  • Loss of Key Supplier
  • Political Risk
  • Product Recall
  • Regulatory Change
  • Reputational Risk
    • Does a Captive work for any business?
    Captives can be suited for all industry and business types as long as there is insurable risk. Captive Insurance Group performs a very granular analysis of your business and provides a preliminary feasibility analysis to determine whether or not the captive program would work for your company’s needs. This analysis is free of charge as we want to assure that you have a deep understanding of the captive program before spending a dollar.
    Does a Captive replace my current commercial coverage?
    In most cases, no. Captive Insurance Group tailors your company’s captive program to dove tail in with your existing commercial coverage. We analyze your current coverage, determine what additional risks can be insured in your business, and customize a captive program that best suits your needs.
    How much does a captive cost to start up and have managed?
    Captive Insurance Group offers a turn key service which includes all fees within our management fee. These fees include the price of regulatory compliance, annual actuarial opinions, annual audits, annual filings, annual premium tax, and any ongoing maintenance. This fee is on a sliding scale based on the level of premium that is put into the insurance company each year. Captive Insurance Group provides a detailed 10-year proforma that is extremely transparent regarding all costs that go into the startup and management of the captive.
    Where are captives insurance companies domiciled?
    While captives may potentially be domiciled in an offshore location, we only license and manage captives in domestic jurisdictions.