An insurance captive is an effective option for many who want to control their coverage, premiums and risk retention. There are also benefits to a captive that include profit sharing from positive underwriting performance. While these benefits are widely attractive to many businesses, not all interested companies have the funds or time available to own and manage a captive. This where a rent a captive comes into play.
Owning and managing a captive insurance company is not easy. It requires a lot of time and funding and that is precisely why rent-a-captives have become such an attractive option. A rent-a-captive is a solution that provides the advantages and benefits of being a part of a captive insurance company without having to have the upfront costs, investment capital and the fees that come from captive maintenance. Rent-a-captives also help companies weather the volatile environment of commercial insurance by evening out otherwise turbulent market fluctuations. The experts at Caitlin Morgan Insurance recommend asking questions about the financial risks when you are shopping for a rent-a-captive. One member in a rent-a-captive should not have to experience any risk from other members.
If you’re in the market for commercial insurance coverage, make sure you research all of your options, including rent-a-captives. You may be surprised at all the benefits you can receive with very little risk.