Captive Insurance Services

A method of combining resources among multiple companies to achieve discounts, better service, and enhanced coverage typically available for large companies. Group captives are available for multiple lines including workers comp, auto, and liability.

The Affordable Care Act has done little to reduce costs for middle-market employers. A medical captive is an alternative structure in which the employer or group of employers share in claims experience, but have stop-loss insurance to limit their risk.

Many clients form captives and do not actively process claims. This oversight has two problems. First, legitimate claims must be submitted to ensure the captive is bona fide and respected. Second, most captives participate in a risk-sharing pool which provides 3rd party reimbursement for actual claims.

Captives can provide very valuable risk management and tax benefits. Captives must be formed and operated in accordance with very strict rules in order to realize those benefits. An independent review of existing captives, therefore, is recommended.

A captive provides business insurance coverage to its related entities. The common owner establishes and operates the captive to insure risks of the operating company by covering risks that were previously uninsured or by modifying traditional coverage to improve efficiency