What most organizations are familiar with is working within the traditional guarantee insurance marketplace. That means having insurance policies with a company like Travelers, Hartford, Selective, etc. For the right company a Captive Insurance Group is an opportunity that can provide tax incentives, reduced premiums and protection against hard to place risk or risks that cannot be insured against in the standard marketplace.
Who would be a good candidate for a Captive?
- Annual revenues of at least $15,000,000
- EBITA of $1,500,000
- Organization that has solid cash flow
- Organization with entrepreneurial spirit and willing to commit capital
- Organization that addresses and implements pro-active risk management strategies
- Traditional insurance premiums north of $200,000 annually
In a recent Marsh survey the number of Captives writing non-traditional coverages rose 11% in 2014. The number of Captives writing Political Risk increased 83%, Supply Chain rose 50% and Cyber Liability rose 18%.
Examples of coverages that can go into your Captive:
- General Liability
- Workers Comp
- Reputation Damage
- Loss of Key Employees
- Product Warranty
- Litigation Defense
- Construction Defects