Ownership: Own or Rent Your Insurance?

Ownership!

The American dream of owning a home has been part of our culture for generations.

Why?

Because ownership creates something renting doesn't: equity, control, flexibility, and the opportunity to build wealth.

As a business owner, you clearly understand the benefits of owning your own company.

Business ownership creates opportunities. You make decisions. You have flexibility. You participate in the profits. And when the business succeeds, you have the opportunity to build something of lasting value.

So here's a question for a successful business owner:

Why are you renting your insurance?

For most businesses, insurance works much like renting a home.

You pay your premium to an insurance company and accept whatever pricing, coverage terms, deductibles and decisions the insurance company provides. The insurance company assumes your risk, manages the money, pays claims, and keeps the underwriting profits. If your company's claims are better than expected, you may receive better pricing in the future or receive your annual increase anyway —but the insurance company still owns the economics of the insurance program.

What if you could change that?

What if, instead of simply paying premiums to someone else's insurance company, you could own your own insurance company?

That's not only the basic concept, but the facts behind a Captive Insurance Company, your insurance company which you own.

A properly structured captive is first and foremost a risk-management strategy. It is designed around the unique risks of your business and complements your existing commercial insurance program. Depending on the circumstances, a captive may insure risks that are difficult, expensive, or otherwise unavailable in the traditional insurance marketplace.

Think about owning a home. When you own, your payments contribute to an asset you control. You have flexibility. You have choices. And you have the opportunity to build equity and wealth.

Captive insurance applies a similar ownership philosophy to risk.

Control.

You have greater control over how your risks are identified, managed, insured, and financed.

Flexibility.

Your insurance program can be designed around the risks and needs of your individual business rather than relying solely on a standard commercial insurance program.

Profitability.

When a properly structured captive experiences favorable claims results, underwriting profits can remain within the insurance company you own rather than automatically becoming someone else's profit.

But ownership isn't for everyone.

Just as buying a home requires the right circumstances, owning a captive requires the right business, financial strength, risk profile, and commitment to proper insurance structure, regulation, and administration.

The question isn't whether every business should own a captive.

The question is whether your business has reached the point where continuing to rent your insurance deserves a second look.

Suze Orman said:

"Owning a home is a keystone of wealth... both financial affluence and emotional security."

And Tony Gaskins said:

"If you don't build your own dreams, someone will hire you to build theirs."

Business owners understand ownership.

They understand that ownership creates control, flexibility, and the opportunity to build long-term value.

So when you look at the hundreds of thousands—or potentially millions—of dollars your company spends on insurance, ask yourself:

Are you simply renting your insurance? Or could you be in a position to own it?

Own or rent?

For the right business owner, now is the time to take a second look at ownership.

Owning your own insurance company is

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