Data In, Dollars Out: The Business Intake Process for Captive Insurance
A simple business intake form takes two minutes to complete and provides the data needed to evaluate whether your company qualifies for captive insurance.
What Is a Business Intake Form?
A Business Intake form is essentially a snapshot of your business. It literally takes two minutes or less to complete, remains confidential, yet this completed form communicates volumes and is the initial action a business takes in creating their own captive insurance company.
Although every qualified business should explore the opportunity to own their own insurance company, not all do. Two minutes and some education provide a glimpse into the power of owning your own insurance company, protecting your business, creating a new profit center, and implementing a solution — a risk management solution to both insurance problems as well as non-insurance problems such as buy-outs, acquisitions, and retirement.
How Does a Business Qualify?
The same way every insurance policy in the country does — from data, through insurance underwriting, and through actuarial analysis. Data in equals dollars out. The detailed information provided offers insight into the exposures any particular company has, risks currently insured as well as those which may not be currently insured.
Additional Data for the Evaluation
With the intake form complete, additional data should be attached:
- Copies of existing insurance policies. The specifics of these policies provide the limits, the exposures covered, as well as the exclusions — items not covered in the existing policy.
- Aging report. Also called an accounts receivable aging report, this is a record of overdue invoices from a specific time period used to measure the financial health of the company and its customers.
- Schedule of values (SOV). For business owners owning multiple real estate properties, the SOV identifies what a property is worth and costs involved with those properties.
- Medical benefits data. Captive insurance also provides the opportunity to insure layers of a company's medical benefits, specifically stop-loss. This includes company census, current benefit plans, claims experience, current rates, and contribution strategy.
From Data to Your Own Insurance Company
Ultimately, data in provides the important information needed to evaluate the risks a company has. With that data, the team can then provide, free of charge, data out — a snapshot of what your own captive insurance company may look like, dollars out through your own pre-feasibility study.