Own your own insurance company.

A captive insurance company is a private, licensed insurer formed, owned, and controlled by the businesses it insures. Rather than purchasing coverage from a third-party commercial carrier, your business creates its own insurance company to cover its risks. It's a proven risk management tool that lets you take control of costs while building long-term wealth.

Every business, once they reach a certain level of success, profitability, liability, or mass should understand how a captive insurance company may benefit them. As a general rule, companies grossing $50mm to $150mm in gross revenue are excellent candidates, however smaller companies may qualify and larger companies definitely should explore.

The primary reason for forming a captive is Risk Management. The primary benefit is coverage of risks associated with your business directly. Risk Management – Captive Insurance insures risks currently uninsured, or are informally self-insured. Risks which potentially impact your business substantially. Asset Protection – Assets of your insurance company, can and should be protected from predators and creditors when properly structured and maintained. Wealth Accumulation – A Captive Insurance company should be profitable. The assets of the insurance company belong to the owner or owners of the company. Surplus of the company is wealth accumulation. Cash Flow – The potential savings realized by obtaining cheaper and more relevant types of insurance, combined with higher deductibles of third party coverage may result in significant improvements in your business’s after-tax cash flow.

A single-parent captive is wholly owned by one company and insures only that company's risks. A group captive is owned collectively by multiple businesses with similar risk profiles, where members share governance and receive returns based on their individual loss performance. Group captives make captive insurance accessible to companies that may not have the scale for a standalone captive.

A captive can underwrite virtually any definable risk — property, general liability, professional liability, workers' compensation, auto, cyber, product liability, and employee benefits including medical stop-loss. Captives can also cover specialized or emerging risks unavailable or prohibitively expensive in the commercial market, such as supply chain disruption.

A feasibility study is the critical first step in determining whether captive insurance makes sense for your business. It evaluates your risk profile, loss history, coverage needs, premium volume, and financial capacity. The study includes actuarial projections, program design options, and cost-benefit analysis to help you make an informed decision before committing capital.

No. Captives are structured to limit your exposure to manageable, predictable loss layers. Catastrophic and excess losses are transferred to highly rated fronting carriers and reinsurance companies. Your maximum financial exposure is defined and disclosed upfront before you join.

In a group captive, dividends are typically declared beginning approximately three years after the end of a policy period, with premium reductions often occurring within three to five years. In a single-parent captive, underwriting profits and investment income accrue directly to the parent company on an ongoing basis. The financial upside grows as the captive matures.

Fees vary based upon what type of insurance company is being created. All fees are transparent and disclosed in our free of charge pre-feasibility study.

Any company considering forming a captive should have a long-term plan for the proper development and implementation of a captive program. Once the captive insurance company is established, an organization should set aside a minimum of four to seven years before taking distributions or dividends from the captive.