For businesses that are looking for long-term solutions to risk management and controlling insurance costs, captive insurance can be a great idea. The concept has been around for over 25 years and seems to be gaining steam of late. Starting up a captive insurance option requires a bit of capital investment, administrative costs, and the upfront costs of starting the company. For those who are unable to cover these costs, rent a captive could be an option. How does a business qualify for renting?
Small to Mid-Size Companies
The cost of insurance can really add up for some companies. At the same time, not all insurance policies can provide large companies with the coverage for risk management that they may need. For small to mid-size companies that are looking for long-term risk management, are willing to share in the costs, but cannot justify the costs of starting their own captive insurance, it can make sense to join a captive insurance group.
When Other Solutions Fall Short
Having insurance is vital for most businesses. At the same time, commercial insurance might fall a little short of what some companies need. If your business makes enough profit that you feel comfortable sharing in insuring the risk management of yours and other businesses, then rent a captive could possibly be a solution for you. For more information about how your business might benefit from captive insurance, talk to an agent today.