Are You Maximizing the Benefits of Your Group Captive? How an Enterprise Captive Can Fill the Gaps
Group captives are collaborative insurance models where businesses pool resources to cover common risks like auto liability, workers’ compensation, and general liability. While they offer benefits such as shared risk and potential cost savings, they may not address all of a company’s unique exposures.
In a recent article published by SME Business Review, Randy Sadler of CIC Services discusses how specialized risks like cyber liability or certain property coverages often remain uninsured within a group captive structure. Additionally, members might face unexpected financial assessments if another participant experiences substantial losses, and they typically have limited control over investment decisions related to pooled premiums.
To bridge these gaps, businesses can establish an enterprise captive—a single-parent captive insurance company created to insure the specific risks of its parent organization. This approach allows companies to tailor coverage to their unique needs, gain greater control over investment strategies, and potentially enhance financial stability by mitigating risks not covered by their group captive. By integrating an enterprise captive with an existing group captive arrangement, businesses can achieve a more comprehensive and customized risk management strategy.
Read the full article here to discover how captive insurance can help safeguard your business against rising risks.