When it comes to commercial insurance it’s important to understand all of the available options prior to purchasing a policy. Employing a captive insurance policy instead of more traditional commercial insurance may be able to help some business owners to save money, but it’s important to understand how this differs from traditional options to ensure that all of the company’s needs will be met.
Captive insurance is owned not by an external carrier, but by the businesses, groups, or individuals who are insured within the group. That means those paying for the insurance can function as the carriers. However, it doesn’t mean that they have to take responsibility for the administration of claims; that’s where a Captive Insurance Agent in Kansas City KS comes in. The agent will provide claims management, deal with legal issues, keep track of accounting, and provide other services as necessary. This leaves those being insured with more control, and less stress.
When using captive insurance, underwriting profits are returned to members rather than kept by the carrier. Those paying for the insurance also receive the investment income off their premiums, and often benefit from lower premium costs. On average, captive insurance is 25% less expensive than traditional insurance policies.
In addition to increased savings, businesses that opt to use captive insurance plans also benefit from increased control. They can work directly with the insurance agent for complete control of the claims handling process, instead of having to place their trust in the judgment of a traditional insurance company’s adjusters. Additionally, some captive insurance group programs offer rewards for both good records and the implementation of superior safety programs instead of leaving renewals to be controlled by the external marketplace. This can improve the financial stability of commercial institutions, and even help smaller businesses to expand more quickly.
It can seem a little bit overwhelming to the uninitiated. Making the change to captive insurance requires both a basic understanding of the market, and due diligence on the part of business owners. Speaking with a captive insurance agent in Kansas City KS can certainly help. Get more information online today, or contact a local professional.
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