Advantages of Captive Insurance
With the hardening insurance market, business owners are looking at all avenues to maintain profitability. A captive insurance company has the potential to be a great solution. Even with low loss experience, business are not necessarily seeing lower premiums. This story is true for many lines of coverage including general liability, workers’ compensation and automobile insurance. A captive insurance company can smooth out premium outlay over a number of years while good claims experience allows the captive to retain the profits in a more tax advantageous environment.
Recently, R. Wesley Sierk III, Director at Risk Management Advisors Inc., wrote in Private Wealth Magazine about the advantages of captive insurance. Wes explains what a captive is, and the differences between retail insurance, self-insurance and captive insurance.