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. Read more about domiciles here

 

 

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