--- title: FAQ description: Not sure which way to go with captives? Follow us. We've been guiding the way since 1981. image: https://content.usarisk.com/hubfs/Stock%20images/Business%20meeting%20in%20a%20virtual%20space%20conceptual%20business%20illustration..jpeg --- [![USARISK_Logo-white.png](https://content.usarisk.com/hs-fs/hubfs/Images/Logos/USARISK_Logo-white.png?width=1388&height=382&name=USARISK_Logo-white.png "USARISK_Logo-white.png")](https://content.usarisk.com/home) ![USARisk_FAQ](https://content.usarisk.com/hubfs/USARisk_FAQ.jpg "USARisk_FAQ") # Captive Insurance Frequently Asked Questions #### Let us help you find the answers to your questions about captives, domiciles and more. ### FAQs - Answers to the most common questions we hear about captives, domiciles, feasibility studies, and more.    At **USA Risk Group**, we know captive insurance can feel complex. That’s why we’ve gathered answers to the questions brokers, CFOs, and business owners ask most often. Whether you’re just [learning about captives](https://content.usarisk.com/captives) or ready to explore your options, this guide will help you get clear, practical answers.  #### **Q: What is a captive insurance company? ** A: A captive is your own licensed insurance company, created to insure your business’s risks. Instead of paying premiums to commercial insurers, you control coverage, costs, and long-term stability.    #### **Q: How do I start a captive insurance company? ** A: The process includes a [feasibility study](https://content.usarisk.com/services), choosing a [domicile](https://content.usarisk.com/domiciles) (U.S. or international), regulatory approval, and ongoing management. Most captives take 3–6 months to establish.    #### **Q: Is captive insurance only for large corporations? ** A: No. While Fortune 500 companies were early adopters, many mid-sized companies use captives today to control costs and manage risk more effectively. Read more on our blog, [How BIG Does My Business Need to Be to Form My Own Captive? ](https://content.usarisk.com/blog/howbigdoesmybusinessneedtobe) #### Q: What types of companies use captives? A: For the ideal captive candidate, we **generally** look for companies that have hard-to-place risks or a strong emphasis on risk management, **resulting in lower-than-average loss ratios**. **However, almost any entity with sufficient scale can form a captive, including** government entities and non-profit organizations.   #### **Q: What industries benefit most from captives? ** A:  Manufacturing, healthcare, construction, transportation, and professional services often find captives especially valuable — but any business with consistent risk exposure may be a candidate.    #### **Q: How do I know if a captive is right for my company? ** A:  The first step is a [captive feasibility study](https://content.usarisk.com/services). This analysis helps determine whether your risk profile, premium spend, and goals make a captive a good fit.     #### **Q: ****What are the types of captive insurance companies?** A: Captive insurance companies can take many different forms:  - **Single-Parent Captives** – owned by one business for its own risks - **Group Captives** – shared by multiple companies - **Association Captives** – formed by industry groups - **Cell Captives** – flexible “rent-a-captive” structures   #### **Q: Are captives only international (sometimes called “offshore”)? ** A: No. [Captives can be formed](https://content.usarisk.com/domiciles) in the U.S. or in international domiciles. USA Risk Group supports U.S. domiciles, including **Arizona, Missouri, Nevada, North Carolina, Ohio, South Carolina, Puerto Rico, Tennessee, Texas, and Washington, D.C.**, and international domiciles, including **Alberta (Canada), Barbados, British Virgin Islands, and Cayman Islands**. We’ll help you evaluate which is the best fit.      #### **Q: Why are my commercial insurance premiums so high? ** A: Premiums rise for many reasons — market cycles, claims history, or broad carrier trends. For some businesses, a captive offers more cost control and stability.    #### **Q: How can my business gain more control over insurance costs?   ** A:  Captives let you retain predictable risks instead of paying them away, while customizing coverage to your needs. This control is often what draws CFOs and risk managers to explore captives.    #### **Q: What alternatives exist to self-insurance? ** A:  Traditional self-insurance puts all risk on your balance sheet. A captive is a regulated, structured alternative that provides formal coverage, compliance, and access to reinsurance markets.     #### **Q: How do captives work with brokers? ** A:  Captives don’t replace brokers. In fact, we often partner with brokers to offer clients an additional tool when the commercial market doesn’t fit.    #### **Q: How much capital do I need to start a captive? ** A:  It depends on the domicile and structure. Minimum capitalization can range from $100,000 to several million. We’ll help you understand requirements early in the process.    #### **Q: Who manages the captive once it's set up? ** A: That’s where an [**independent captive manager**](https://content.usarisk.com/about) like USA Risk Group comes in. We handle compliance, reporting, accounting, and operations, so you can focus on running your business.    ###  Still have questions about forming a captive? [Talk to the captive experts ](https://content.usarisk.com/contact)at USA Risk Group, an [award-winning independent captive manager](https://content.usarisk.com/blog/usa-risk-group-named-captive-manager-firm-of-the-year).    As featured in ![USARisk_CaptiveAward](https://content.usarisk.com/hubfs/USARisk_CaptiveAward.png "USARisk_CaptiveAward") ![White__cica-logo](https://content.usarisk.com/hubfs/Images/Logos/Social%20proof%20(White)/White__cica-logo.png "White__cica-logo") ![White__Captive-Review](https://content.usarisk.com/hubfs/Images/Logos/Social%20proof%20(White)/White__Captive-Review.png "White__Captive-Review") #### About Us We help companies spend their insurance dollars more wisely so that they are better positioned to achieve their financial goals. We do this by first learning what their company’s financial goals are, as well as current insurance coverage, risk management strategies and claim history. Then we determine whether forming a captive insurance company for the organization will help improve cash flow and control expenses. [Learn More [fa icon="long-arrow-right"]](https://content.usarisk.com/captives) #### Contact Us [fa icon="phone"] 1-802-371-2281 [fa icon="envelope"] pmacey@usarisk.ky [fa icon="home"] PO Box 1085, George Town, Grand Cayman, Cayman Islands KY1-1102 ## [[fa icon="linkedin-square"]](https://www.linkedin.com/company/usa-risk-group/)  Copyright 2026 USA Risk Group. All rights reserved. [Legal Disclaimers & Privacy Policy ](https://content.usarisk.com/site-disclaimers) [[fa icon="chevron-up"]](https://content.usarisk.com/faq#) [![USA-RISK-GROUP-LOGO.jpg](https://content.usarisk.com/hs-fs/hubfs/Images/USA-RISK-GROUP-LOGO.jpg?width=249&height=69&name=USA-RISK-GROUP-LOGO.jpg "USA-RISK-GROUP-LOGO.jpg")](https://content.usarisk.com/home)