A company that manufactures widgets or sells a common service isn't necessarily well versed in captive insurance, which is why most companies take advantage of a professional captive management firm. Experience, independence and expertise in insurance, finance, captive law and accounting are just some of the attributes potential captives should seek when looking for a captive manager.
A captive insurance program may be suitable for your company if it:
- Is preparing to make the financial commitment associated with creating or joining a captive program;
- Seeks control over your company’s risk management program;
- Has a favorable track record in controlling losses;
- Is committed from top management on down to maintaining an ongoing, long-term risk control program;
- Cannot find competitively priced or available insurance coverage in the conventional insurance marketplace;
- Is comfortable sharing risk with other companies in a third-party facility, if interested in an association, group or rent-a-captive facility.
