Captive Insurance Tips & Articles

Definition of Captive Insurance Companies

Captive insurance companies are those which are founded for the purpose of financing risks which flow out from their parent groups, which may in some cases also include insuring risks associated with the parent groups’ customers. The use of captive insurance companies is a risk management strategy that a business uses as the basis of…
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Captives Lessen Reliance on Commercial Insurance Companies

Why are more and more middle-market companies forming their own captive insurance companies, even in this uncertain economic environment? Here are two of the top commercial insurers' shortcomings echoed by our clients: Commercial Insurers' Frequent Denial of Claims Conventional insurers enjoy a well-earned notorious reputation for not paying claims.  Our clients tell us they are looking for…
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Alternative Risk Planning for Entrepreneurs

Rather than covering all property & casualty risks through a conventional P&C insurer, like Liberty Mutual, alternative risk planning identifies those insurable risks which are appropriate for different treatment. Strategy:Alternative Risk Planning for closely held businesses using Captive Insurance (essentially a private-label property & casualty insurance company) Service Provider:Capstone Associated Services, Ltd. Capstone has formed…
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Use Your Captive Insurance Company to Lower Health Care Expenses

One excellent use of a property and casualty captive insurance company for one of our clients has been to underwrite a larger deductible on employee health insurance. This has proven to be a win-win for both the employee and the employer in terms of reducing health insurance costs. Background With encouragement from the federal government, health…
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Delaware Enjoys Growing Reputation as a Captive Friendly Domicile

Delaware has long enjoyed a reputation as the premier U.S. domicile for corporate formations. Today over 900,000 companies representing 63% of the Fortune 500 and 50% of companies traded on the NYSE and NASDAQ are incorporated in Delaware. In 2005, Delaware enacted legislation modernizing state law regarding the formation of captives and positioning Delaware as…
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One Year After the West TX Explosion, Operational Risk Remains a Factor

April 17, 2014 marked the one-year anniversary of an unforeseen ammonium nitrate explosion at The West Fertilizer Company in West, TX. People in the small community are still reeling from the ordeal, slowly rebuilding and assessing what steps need to be put in place so something like this doesn’t happen again. The blast killed fifteen…
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The True Cost of Business Interruption

Storm season is approaching and if we’ve learned anything from Superstorm Sandy, Hurricane Ike, and the 2013 category EF5 tornados in Illinois, it’s that Mother Nature knows no bounds. The aftermath of these natural disasters has shined a light on SMBs that have opted out of business interruption insurance. As they work to rebuild, they’re…
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