Have You Looked Into Group Captive Insurance Options?
It’s becoming well-known that companies can save a lot of money by owning their own insurers as more and more businesses do so. It’s especially attractive to niche industries where mainstream insurers might not fully understand the needs of the client, but it offers savings that make many companies served by other forms of business insurance very interested.
Of course, for many years the number of businesses that could access these savings was limited because of the cost of funding an insurance company with the appropriate cash reserves. These days, that is changing as more and more companies are coming to understand how group captives can bring down costs.
Advantages of Group Ownership
When a captive is owned by a group of companies with closely aligned insurance needs, each participant carries a smaller share of the risk, and therefore a smaller cash outlay is needed from each. In turn, if the company does generate any profit, the dividends are also split.
This also increases the number of claimants, necessitating a little more administrative work, but it’s essentially the principle insurers count on to be profitable when catering to a wide range of clients. By working with a broker who brings together closely related businesses that aren’t directly competing with one another for market share, synergistic relationships can be formed that help all your businesses be more successful.
Outsource Your Administrative Work
Today’s captive insurers can be run without much involvement from the owning companies thanks to the growing number of services that can take care of the day to day operations involved with updating policies, processing claims, and filing the appropriate tax paperwork. That just leaves oversight to your company and the other owners, allowing you to focus more on your core business and less on running the insurer that only exists to help it be successful.