Business is about control: Control over your product, your employer’s productivity, and control of your own finances. Very few things cause as many headaches as insurance issues. Some insurances are required by law while others are simply foolish not to carry for your business. If anything goes wrong, your business is left out in the cold with enormous out of pocket expenses.
Many businesses these days are looking toward captive insurance companies to fulfill their insurance needs. Why? Because it gives a business their OWN insurance. Not only do you get to insure your business, but you’re insuring it under your own terms and in your own way. The result: More control. Without this type of control, your business is left in the hands of often greedy insurance companies.
There is more than one reason to start an insurance company for your business itself, not just the one reason of having more control over your business itself and not having to go to third parties for your insurance needs. You’ve also got certain tax advantages when you go into the captive insurance business for yourself.
Protection from creditors is another big plus of captive insurance. With the right management and oversight, you’re going to have a lot of advantages when it comes to dealing with creditors and other agencies. Insurance premiums are another big focus. You’ll have much less to worry about in the way of insurance premiums once you’ve adopted the captive model for your particular business.
Insurance protects businesses from a host of unforeseen circumstances and disasters. Property damage is just one way that your business can be harmed. Almost every business is often faced with a host of lawsuits during the year as well and it can be disastrous to play out every one and settle. With the right kind of insurance, you’re going to be able to fend off so many threats to your business and not have to worry as much about the things that can threaten your business.
As time goes on, more businesses are adopting captive insurance models for their particular insurance needs. This puts more power in the hands of the owners and gives owners a way to handle their own insurance needs. With business, control and power are often key. Captive insurance is just one way to gain more control over the future of your business.