Learn About Captives
What is a Captive?
Information about Captives and How they’re structured.
Captives 101:
What is a Captive?
A Captive is an insurance company owned by the Member(s) and designed to meet the needs of specific business industry segments. Captives are typically formed by companies when insurance for certain risks is difficult to secure through the traditional insurance markets. Captives are formed by large entities or groups of medium to large companies. They can be industry specific or span various industries and are domiciled in acceptable venues of the United States or foreign jurisdictions. Captives can also be beneficial in planning for estate and business succession, asset protection, and income taxes.
Examples of industries that use Captives are:
- Manufacturers
- Automobile Dealerships
- Transportation
- Distributors
- Construction
- Medical and Dental
Coverages that a Captive may Insure are:
- Coverage areas that are subject to Frequency Losses
- General Liability
- Auto Liability
- Garage Liability
- Other areas of coverage may be considered to ”guard” and/or minimize Severity Losses
- Deductible Reimbursement
- Franchise legal defense costs
- Liability for nuisance/frivolous lawsuit