A unique alternative to traditional insurance.
Captives are surely not for every company or business owner. Yet, for those companies that feel they are ready to take control of their own destiny, captives offer a unique, viable and time-tested way to do so.
Harmon Dennis Bradshaw brings a unique level of experience and expertise to their customers when it comes to captive alternatives. This specialization allows our clients to enjoy yearly expense reductions and operational improvements that reflect their commitment to long-term success.
In traditional commercial insurance, a client pays premiums to an insurance carrier who then bears risk for premiums paid. With an alternative risk scenario, such as a captive or risk retention group, a client pays a similar premium but also has the opportunity “earn back” those premiums with investment income—if they have good loss experience. This offers the client stability associated with long-term cost of risk. The clients we’ve placed in captives are some of our happiest as they’ve seen firsthand how financially beneficial they can be.
Captives & risk retention groups work favorably in certain industries, and our experienced team can help you determine whether Alternative Risk is the best approach for your organization.
Coverages that can be included in a Captive:
- Workers’ Compensation
- General Liability Insurance
- Automobile Liability and Physical Damage
Other benefits that are derived from being a Captive owner:
- YOU earn any developed Underwriting Profit and Investment Income (not the carrier)
- AGGRESSIVE Claims management
- Specialized Risk Control services
- CONTROL over decisions affecting you (Claims, Safety and choice of members)
- Premiums based primarily upon YOUR experience, not the insurance industry’s results
- No renewal surprises
- Forum for exchange of ideas and “Best Practices”
Qualities that successful Captives share:
- Careful risk selection of members
- Proactive risk management programs
- Quality partners/providers (captive management, actuarial, legal, CPA, domicile managers)
- Actuarially sound pricing and funding
- Minimizing of risk shifting and sharing
- Similarity of interests and goals (homogeneous captive approach)
- Long-term solution to insurance needs
Attributes of a good Captive member:
- Entrepreneurial spirit
- Financially sound
- Ability to take risk
- Commitment to risk management, throughout the organization
- Desire to take more control of the insurance process
- Long term commitment
To see if a captive fits into your company’s plans and goals for future success, contact us to schedule a personal 20-minute Webinar to learn more.