When it comes to your company’s risk management, are you looking for more control, stability, and long-term savings? If so, a captive insurance program might be exactly what you need. But how do you know if it’s the right fit?
What is a Captive Insurance Program?
At its core, a captive insurance program allows your company to create its own insurance company. It’s a powerful strategy that can provide customized coverage, reduce costs, and give you more control over your insurance claims and processes. Instead of relying solely on the fluctuating traditional insurance market, you essentially take the reins and manage your own risk.
Who Should Consider a Captive?
Captives aren’t just for large corporations. If your company answers yes to a few key questions, a captive could be a smart move:
- Are your claims below your industry average?
- Do you have a strong safety culture?
- Is your company financially strong?
If you answered yes, you could be in a position to leverage your risk management efforts into a more effective, personalized insurance solution.
The Benefits of a Captive Insurance Program
- More Control
A captive allows you to control how your insurance is structured and how claims are handled. No more feeling powerless when you file a claim or seeing your premiums rise because of market trends. With a captive, you have a say in everything. - Eliminate Market Fluctuations
Say goodbye to unpredictable insurance markets. Traditional insurance prices can fluctuate year after year, depending on external factors. A captive provides stability and can smooth out the highs and lows that are common in the traditional market. - Long-Term Financial Benefits
Instead of paying premiums to a traditional insurer, the money you invest in your captive insurance program can potentially generate dividends. As your captive insurance company grows and remains profitable, it could pay you back – making it a strong long-term financial strategy. - Reward Your Efforts
If your company has invested in a strong safety culture or consistently kept claims under control, a captive insurance program rewards those efforts. You’ll have the opportunity to reinvest in your business and get back what you’ve earned through smart risk management.
How We Can Help
If you’re tired of paying too much for insurance or frustrated with the lack of influence over your claims, we are here to help. At Hoffman Hanafin, we work with businesses like yours to explore captive insurance as a solution. We show you how it works, help you set it up, and ensure you get the most out of this strategic approach to risk management.
Ready to take control of your insurance program and create a solution that truly fits your business? Let’s talk about how a captive insurance program can pay dividends in the long run.
