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Many businesses turn to captive insurance to help save money on insurance costs and keep control over their coverage. However, some captive programs can be expensive, especially if you don’t have the assets that make having a captive worth it.
With rent-a-captives you can get the best of both worlds by allowing yourself the benefits of captive programs, while not having to form an independent captive yourself. This is a cost-effective and flexible approach to captive insurance, which offers businesses, agents, and brokers customized risk management solutions.
What is Rent-a-Captive Insurance?
Rent-a-captive insurance, also known as a rental captive or protected cell captive, is a type of captive insurance that allows a business to “rent” a cell in a larger captie facility. This allows the business to benefit from some elements of the captive but takes away some of the financial burden if the business doesn’t have the assets or capital to fully participate in the captive.
Who Needs Rent-a-Captive Insurance?
Rental captives are good options for smaller businesses who want to take part in captives, but don’t have the assets to either create a single parent program or to make being a full participant in a group captive worth it financially. By also not being a full participant, you avoid the administrative and legal responsibilities of running the captive company.
Why Is Rent-a-Captive a Good Option?
Rent-a-Captives are good alternatives to single parent or group captives because they can offer flexibility and cost savings. Rent-a-Captives are also good options if a company is thinking about creating a captive as the company gets bigger. They may not have the ability to form one now, but by renting a cell in a captive program, they can receive some of the benefits of captives until they are ready to build their own.
Coverages
- Workers Compensation
- Auto Liability/Auto Physical Damage
- General Liability/Products Liability
- Professional E&O Liability
- Property
- Umbrella Buffer Liability
- Medical Stop Loss
- Voluntary Benefits
- Environmental Liability
- Product Recall/Product Withdrawal
- Contingent Business Interruption
- Loss of Key Supplier/Loss of Key Employee/Loss of Key Customer
- Reputational Value Insurance
- Administrative Actions
- Defense Cost Reimbursement
- Deductible Buydowns
- Warranty/Extended Warranty
Coverage Eligibility
- Proven Track Record of Strong Cash Flow and Financial Results
- Loss Ratio Less than 60%
- Premiums Greater than $300,000 for Any One Line of Coverage
- Entrepreneurial
- Assuming Risk Already or Willing to Assume Risk in the Future
Policy Highlights
- Underwriting Profit Distributions
- Access and Insight into Root Cause of Loss Data
- Control over Risk Management Program
- Access to Reinsurance Market
- Selection of Service Providers
- Risk Financing and Timing Benefits
- Long Term Stabilization of Insurance Premiums
Intake Form
To submit an Intake Form:
- Click on “Download Intake Form” button below to get Form
- Complete the Intake Form and Save it.
- Email the completed Intake Form to:
Speak to an Expert
Evan Muffly
President
Specialty Captive Group, a division of Specialty Program Group
John Yaple,
Director of Captive Insurance
Specialty Captive Group, a division of Specialty Program Group
