What is a Rent a Captive?
If there is one expense that many companies tend to struggle with, it is funding insurance. Insurance is a necessity for many businesses, especially for managing risks. When a business chooses to go with a commercial insurance company for insuring assets and risks, large parts of the cost goes toward the insurance company’s profits. A solution for this is captive insurance, which is a type of in-house insurance that large companies can create for insuring their own risks. For companies that are large, but not large enough to form their own captive, rent a captiveis available.
Another Solution for Risk Management
Captive insurance is created when a company basically decides to insure itself. As such, the insurance is usually only available to that company and not to the public. This also helps the company to have greater control over their insurance, and to put the money that would normally go to an insurance company’s profits toward its own insured.
Help For Smaller Companies
Some of these captive insurance companies will form groups where smaller companies that do not have the means to create their own captive can join in. This allows the smaller companies to have the benefits of captive insurance without the cost of having to form their own.
If your business is in need of some “in-house” risk management, but cannot form its own captive insurance company, consider a rent a captive solution. You can reap the benefits and rest assured that your company’s assets and more are appropriately insured.