Frequently Asked Questions

 

Q: What is a captive?

A: A captive is a licensed insurance company that is wholly owned and controlled by its insureds and insures the risks of its owners. For more in-depth details about captives, click here.

 

Q: What are the benefits of owning a captive insurance company?

A: By creating a captive insurance company, owners can increase insurance coverage. The limits of coverage can then be expanded to create additional capacity. The captive can then be used to finance risk at a lower cost. To see all the benefits of a captive, click here

 

Q: What types of companies use captives? 

A: For the ideal captive candidate, we look for successful, profitable large to mid-market companies in all industries that often have hard-to-place risks or set a strong emphasis on risk management. This includes government entities and non-profit organizations. Read more here

  

Q: What types of captives are there?  

A: Captive insurance companies can take many different forms. The most common types include Single-Parent Captives, Group Captives, Risk Retention Groups, Rent-a-Captives and Association Captives. USA Risk Group offers eight types of captives. To learn more, click here

 

Q: Do I qualify for a captive? 

A: Every company or owner’s goals are different and therefore we cannot determine if a captive is right for your needs until we engage in a consultation call to review financial goals, risk management strategies and claim history. Schedule a consultation call here or review additional captive criteria here.  

 

Q: What fees are associated with forming a captive?

A: Fees can vary based on structure and domicile. We will provide you a detailed estimate of costs as part of our evaluation and analysis process.

 

Q: What lines of insurance can I write in my captive?   

A: Most lines of insurance can be written by a captive insurance company. Most common lines of insurance, but certainly not limited to, include workers’ compensation, auto and general liability. To learn more, click here

 

Q: What is the process of forming a captive? 

A: First, a free consultation call is scheduled to determine if a captive is a viable solution to help your company attain its financial goals. If the company is a candidate for a captive solution, we provide a contract that includes a fee structure for a customized Evaluation & Analysis Report. This outlines the structure and domiciles we believe best align with your long-term goals as well as a feasibility report. Once approved and a contract is completed, we begin the formation process. We then help with on-going captive management tasks to ensure the utmost success for your captive. Find out more here.  

  

Q: How do I determine which domicile is best for my captive?

A: Where a captive insurance company will be domiciled is determined once we know the goals of your captive. We work with you to find a suitable actuary to conduct a feasibility study. This will address issues such as available capital, the need for flexible investment of the captive's assets and the lines of insurance to be written. 

 

 

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