What's the Risk?
Business owners face risks every day. Don't curse the insurance companies — become one. Captive insurance is the antithesis of risk for qualified businesses.
We face many risks each and every day of our lives. It seems as though there is insurance for nearly all types of risk, and insurance companies are continually recording record profits providing coverage for these risks. Business owners have additional risks most individuals do not share and the burdens that come with these risks.
Insure these risks. Don't curse the insurance companies — become one.
Risk Management at Its Core
At ALINK Captive Insurance Services, we specialize in risk management: the practice of appraising and controlling risk using various strategies — in fact, the best strategies to reduce risk.
An 831(a) or 831(b) captive insurance company is one of those strategies. As you learn all about what a captive insurance company is, is not, and how to create, maintain, redeploy, and eventually shut down your captive insurance company, as well as understand the multiple layers of benefits of insuring risk through your own insurance company, you may feel like a 16-year-old driver again — overwhelmed by all the information being thrown at you, yet afraid to ask questions. We're here to proactively teach, guide, and execute the operation of your captive insurance company, so ask all the questions you need to.
Captive Insurance Is Everywhere
Captive insurance is not new — these companies have been around for over 70 years. Although they may be new to you, there is an entire captive insurance world around you. Most Fortune 100 companies have captives. Most auto dealerships have one set up for their warranty work. Many hospitals and commercial properties have captives to insure the many risks of their buildings, belongings, and even the exclusions.
Because the cost of administering a captive has dropped considerably over the years, many successful small-to-mid-sized, privately-held businesses have been exposed to the benefits of captive insurance. As a result, more businesses are benefiting from owning these insurance companies and the benefits they provide:
- Enhanced risk management
- Cost savings
- Better cash flow
- Control
- Profitability
- Flexibility
The Risks You Can't Control
What is the risk your business will be affected by a pandemic, or have interrupted cash flow, supply chain interruption, or one of your sub-contractors goes out of business leaving a significant deficit in your accounts receivable? These are the very risks you don't have control over and should be insured through your insurance company. There is insurance for every one of these scenarios and many more.
Insurance Is the Antithesis of Risk
Insurance is the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
Is it risky? Insurance is the antithesis of risk. Captive insurance reduces risk and is your link to security for you and your business.