Home / Captive Insurance
A Captive Insurance Company Can Provide A Coverage Solution For Your Business
For larger businesses, locating comprehensive insurance coverage can prove challenging. Depending on your industry and offerings, you may be vulnerable to unique risks that insurance companies are ill-equipped to handle. Prohibitive premium costs and tax implications can also create hurdles for covering your business, making it difficult to adequately protect your interests.
Captive insurance companies present an alternative solution for some business owners. At Lobb & Plewe, we assist companies with the formation and maintenance of single or group captive insurance companies, as well as providing insight on the impacts of such a risk-mitigation vehicle.
A Unique Avenue For Coverage With Distinct Advantages
Forming a domestic or international captive insurance company allows you to tailor a policy that directly serves the needs of your business. Aside from more complete coverage, you can also pay lower premiums than you otherwise would at an outside firm. While there are overhead and administrative costs to consider, a captive insurance company can offer certain tax benefits. Other advantages to this insurance method include:
- The ease of reinsurance: A captive insurance company more easily allows you to reinsure workers’ compensation, credit risk, general liability and other lines.
- Coverage that is lacking in the market: You can cover your company for risks that other insurance providers do not account for or are averse to covering.
- Asset protection: This insurance vehicle allows you to better shield your assets from creditors in the event of a claim.
The creation of a captive insurance company is a sizable commitment. Before delving into this technique for insuring your business, it can be helpful to consult with legal counsel. Our attorneys are familiar with this segment of insurance law, and we can help you to better understand the particulars of creating your own insurance subsidiary.