When it comes to distinguishing the different types of insurance options, it might be daunting at first. There are a number of different options. Agency captives are one option to insure against risks. Here is what you need to know.
Captive insurance agencies are formed by a parent company to underwrite their own needs. In fact, many major companies have captive insurance companies that they rely on. An agent that works for a captive insurance company sells one product to clients. Caitlin Morgan Insurance explains that the demand for agency captives comes from those who are in a risk class but no insurer to create the new products.
Working with an agency captive insurance company provides protection that commercial marketers might find to be too expensive. These are normally specialized insurance coverages. When you choose captive insurance, the benefits include:
Control over claims
Often, captive insurance agencies provide higher quality service. Business owners can even maintain their traditional coverage. This can be used as supplemental insurance for what the business already has. The coverages and limits are customizable to the industries exposures and risks.
With all of the different types of insurances out there, it may be daunting when it comes time to choose an agency for your company. Captive insurance is one option that can be incredibly beneficial for some industries.