If you are wondering about how captive insurance works and whether it is some new type of insurance that you have never heard about, we are here to tell you all the answers. The first thing that you are going to want to understand about captive insurance is that it is not a type of insurance. It is an insurance company that offers insurance in a new way. The captive insurance industry is based around the premise that businesses should have an important stake and say in the way they are getting insurance. It is different from the traditional business and insurance company relationship.
What happens when you are using captive insurance is that you are going to buy a stake in the company. Whether it is one percent or ten percent, you will have a stake in the business that you are buying. It results in a situation where you are getting insurance from a company that you part own. And if you have ever felt a lot of frustration at dealing with insurance companies in the past, you will be happy to know that those days are very much in the past. You will not have these problems with captive insurance.
Why? Because now you have a say in how things are being done. It is not your company, but you are a shareholder, which means that you have a voice. And since the other part owners are also businesses, it means that you are buying into a company that is fully “business oriented.” It must be self-sustainable, but it is not going to screw you over or make you lose money in the same way as a regular insurance company. You are getting better rates, better coverage and much better support when you need to file a claim.