Sometimes you may feel like there has just got to be an insurance policy for your company that is much better than the one you currently have. However, insurance policies, especially business ones, can be extremely confusing, especially when you do not know all of the legalese behind it. One of the best policies that many always forget to consider is group captive insurance. But what are the benefits of this type of insurance? Here is a breakdown of what most business policyholders should expect.
When commercial insurance companies base the amount they will charge your comapny for premiums, they are using many different factors. These factors include the number of any previous claims, the potential cost of future claims, the potential profit off of future investment, and even overhead. However, if the company holds a policy for group captive insurance, they can bypass all of these expenses and use the money saved to invest right back into the company. The premiums always turn out to be lower because far more precise data is used to determine the risk factors and the potential for necessary payouts.
Also, with mainstream commercial insurance providers, there may very well be risks that a company has as part of their business that the provider is simply unwilling to cover. BY taking out a captive insurance policy, the business is essentially insuring themselves. This means that they can cover whatever they want in terms of risk because who else knows the business better than the business itself.
As you can see, as a business owner, there is really no reason to not take out a policy for group captive insurance. It is in the best interest of all involved and if the company is a publicly-traded one, the shareholders will very much thank you for it!