Making the best decisions for your business begins with knowing what kind of insurance to take out. For example, you might not be aware of your options with single captive arrangements. Making the assumption that a traditional structure is best for your business is an easy way to wind up in the wrong place down the line. There are many organizations that benefit more from a pure captive arrangement. Use these points to gain insight into your options.
What Is Pure Captive Insurance?
The main thing to understand about single parent captive insurance options is that it is a policy that is controlled by a single company that provides insurance services to the policyholder. Typically, business owners pursue this option when they are looking to reduce how much they spend on insurance. You are able to stabilize prices and purchase only the coverage you require when you follow this option. Additionally, you will be able to capture underwriting profit, which can be a big advantage Other benefits for pure captives include:
- Improved access to working capital
- Better management of risks
- Easier to handle matters of planning estates
Follow the Best Path
Though it can sometimes seem like a traditional arrangement is the right choice for your coverage, looking closer at your options can highlight exactly which selection makes the most sense. Take time to look over pure captive solutions and see what’s right for you.