Property Captive Insurance
Captive Business Property Insurance Coverage Increases Control While Stabilizing Costs
Upgrade your current risk portfolio today utilizing property insurance captives. Your company has a number of unfunded risks leaving your company vulnerable.
How Do Property Insurance Captives Work?
Instead of transferring all of your insurable risks to a third-party insurance agency and rely on their actuarial data to dictate your premiums, you use your own data and set aside your own projected losses. Captive insurance is an investment—if losses are less than expected, you make a profit. Instead of insurance companies making this profit, you retain it.
You insure your business against risks like fire, storms, theft and earthquakes with property insurance. Captive property insurance allows property insurance to protect and enhance your business’ profits.
Joining a captive property insurance group enables your company to share in underwriting investment profits while insulating you from increased premiums based on loss history.
Requirements for Setting Up a Property Insurance Captive
Joining the property insurance captive has a few requirements to ensure member quality and maintain long term strength:
- Membership in a casualty captive
- $5,000 minimum premium
- $5,000 minimum deductible
- An acceptable risk profile
If your company meets the criteria, it may be eligible to join a property captive. Your firm stands to save money while avoiding ever increasing insurance premiums after enrolling in a captive with Alternative Risk Resources.
Property Insurance Captives Cover Unfunded Insurable Risks
Alternative Risk Resources’ brokers have access to captive property insurance companies allowing your firm to increase control over insurance policies and keep costs low without diluting risk mitigation. The captive property insurance offered by Alternative Risk Resources covers:
- Property damage
- Business interruption
- Equipment breakdown
- Flood and earthquake
Property insurance captives may act as a tremendous supplement to your existing property and liability policies. You may transfer more risk to your captive by raising deductibles on your third-party policies. Your captive makes up the difference if you ever have a claim on that policy. Catastrophic risk is shifted back to your third-party policy and away from your captive.
Captive Insurance Brokers Give You More Control of Your Assets
Captive insurance provides companies with an extra incentive to establish safe working practice and eliminate losses. While captives increase the risk for financial losses (especially if your in-house actuarial data is inaccurate), it promises increased profits the more companies successfully limit losses. Captive insurance is unlike other traditional forms of insurance, and offers you an edge in the market.
Captives put an unprecedented amount of control in your company's hands regarding your insurable risks. It gives you a better opportunity to retain your earnings in the case of catastrophic losses. When you can choose where to designate each unique insurable risk, it gives you a better ability to plan for the future based on your own expectations for the company.
Property Insurance Captives Help You Make More Money
Through basic reinsurance principles and tax code benefits, captives allow you the opportunity to cover more self-insured risks and turn it into a significant profit. Here's how property insurance captives make you money:
- The premiums paid by your company are a deductible business expense, but are received tax free in your new captive.
- Risks are diversified, helping your captive to generate underwriting profits and accumulate reserves.
- As your captive gains a surplus, you may reduce the amount of third-party insurance (lower expense = greater profit)
- You can access captive funds through dividends or liquidation. Either way, distributions will be taxed at more favorable rates than ordinary income taxes.
Captive insurance brokers at Alternative Risk Resources in Brookfield, WI walk you through the process of setting up a supplemental property insurance captive and answer all of your questions along the way. We ensure you secure a more stable and profitable future.
Contact the captive property brokers at Alternative Risk Resources to control your business insurance costs.