Casualty Captive Insurance

Contact Captive Brokers Now Corporate Fleet Vehicles Covered by Casualty Captive Insurance Cover worker's comp and auto liability with casualty captive insurance

Control Business Insurance Cost with Casualty Captive Insurance

When your business enacts safety programs and reduces the number of insurance claims it files, your traditional insurance providers retain unused premiums. Even with reduced claims, traditional insurance providers may decide to raise your rates anyway, citing “market conditions.” Traditional insurance differs greatly from captive insurance: forming an insurance captive with Alt Risk Resources means taking a firm grip on your financial present and future.

Joining a group captive insurance program offered by Alternative Risk Resources makes your company the beneficiary of your reduced claims history.

How Do Casualty Insurance Captives Work?

A casualty captive is a self-insurance policy. You determine your projected losses using internal actuarial data and set up your own insurance company to handle premiums and loss prevention. If you project $1 million in expected losses, you may charge yourself a gross premium of $1.5 million. An insurance company charging those premiums keeps the extra $0.5 million as payment for receiving your insurable risk should your losses match your expectations.

When you set up a casualty captive insurance company, you keep the profits from unused premiums—not your third-party insurance company. The $0.5 million investment comes back to you.

What Does Casualty Captive Insurance Cover?

A captive provides just about any type of insurance in accordance with the rules and regulations in the state or country in which it is domiciled. Many insurable risks can covered by a group captive insurance company at a lower cost and with better benefits than anything available in the traditional insurance marketplace. Here are some of the most common types of insurance captives:

  • Worker's compensation
  • Automobile Liability
  • Crime
  • Cyber security
  • General and umbrella liability

Captive coverages will continue to evolve as the business climate changes. In recent years, companies have begun turning benefits programs over into captives due to rising health care prices. 

Control Business Insurance Cost with Casualty Captive Insurance

Delivery van covered by casualty captive insuranceInsure your fleet of cargo vans and other vehicles with casualty captive insurance.

Captives allow you to have more control over your internal insurable risks. If you rely on third-party insurance coverage alone, every day your company is exposed to uninsured risks. While the possibility of loss may be low, you can benefit from extra protection with the possibility of making a profit. 

Trusting entirely in a third-party insurer means relying on their actuarial data and volatile market conditions. Handling insurance premiums and risk assessment internally means you can more accurately project future losses and plan for the future accordingly. 

You can adjust your third-party plan in accordance with the level of maturity of your captive. As it matures, you may raise the deductible on your third-party plan and let the captive make up the difference should you ever have a claim on that policy. Catastrophic risk is shifted away from your captive and toward your third-party plan. Profit potential is buffered when the third-party plan carries the most catastrophic risk.

It's up to you. Captives give you greater control of your assets and how insurable risks are distributed. Contact the casualty captive insurance brokers at Alternative Risk Resources today to discuss if captive insurance programs are right for you.

Make More Money—Set Up a Casualty Captive Insurance Company

With a group captive casualty program, premiums can actually go down. Setting up a captive gives you more incentive to operate your company safely. Positive and effective loss prevention measures mean you give yourself a better opportunity to turn a profit. 

With group captive casualty insurance, any unused premiums are returned to your business along with investment income generated on the premiums. Captives let you set up a safety net your business needs using pre-tax dollars, you you're covered if you have an unexpected loss. Captives create a new profit center—they can be a great benefit to your bottom line.

Given the choice, why would you continue to spend unrecoverable money on traditional business casualty insurance?

Have Alternative Risk Resources’ brokers place your business with a captive casualty insurance company to turn your current insurance dollars into bottom line profit.

Contact group captive insurance company brokers at Alternative Risk Resources to unlock greater profitability and better casualty coverage for your business.
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