What is Captive Insurance?
At the base of it, captives are owned by the organization(s) that it insures. Essentially instead of paying a traditional commercial insurance company, captive owners pick and choose for what coverage is right for them. This allows owners to improve risk management, minimise insurance spend, control their claims and coverage, facilitate cash flow improvement, and potentially accumulate some wealth.
How is Captive Insurance possible?
Captive is an alternative option to business insurance or self-insurance through a parent company or group of companies creating a licensed insurance company to provide coverage for themselves. Through our captive program at Paramount, small, medium, and large size enterprises could do this exact thing with their own business insurance.
Over the past 60 years, captive insurance has evolved from being prominent in the USA, to being a worldwide sought-after alternative for business insurance. It is no surprise that most of the fortune 1000 companies have adopted a captive program.
What is the difference between a single-parent Captive and a group Captive Insurance?
Single-parent captives are typically for larger corporations that can afford to retain complex insurance risks independently. Often these companies need much more complicated coverage that isn’t always attainable or affordable in the traditional commercial market, so they create their own company where they have much more freedom.
Group captives are owned by a group of companies. The group captive structure allows small and medium sized businesses to enjoy the same benefits by pooling their resources and sharing risk with other like-minded companies.
So, what are the benefits?!
Like we said before, captives allow you to control your coverage and claims to cater it to your business’s exact needs… On top of that, captives provide an opportunity for return on premium, customizability of coverage, improved risk management, and minimized insurance spend. Whether it be a single-parent captive, or a group captive; the opportunities are endless.
What are you waiting for? Visit https://paramountinsurance.ca/the-captive/ or give us a call for more information on how you could make this your business’s reality!