Alternatives to traditional insurance coverage have been receiving the rise for more than a decade because of their promise of tailored protection and reduced costs, but it's worth remembering that any option you use to consider your policy to your own hands will have risks and trade-offs. For the best company with the right plan, self-insurance and captive programs both offer wonderful benefits, however, you have to be able to accurately estimate your risks and invest to completely fund your solution. For those who want the benefits of both, just one parent captive solution is what you want.
Designing Your Single Parent Captive
Single parent captives work like other captive companies in most ways, providing you with an independent operation your still own and have the ability to dictate your policy must. The expense for policies are adjusted to meet your requirements, claims history, and administrative costs for that captive.
Unlike a number of other captives, just one parent operation doesn't serve any companies apart from yours, as well as your business needs to be in a position to totally fund it. That's where its similarities to self-insurance lie.
Work With an Experienced Team
There are companies available who offer captive setup services and ongoing administration for an economical fee. That allows you to concentrate on the coverage you need without needing to learn a lot about how to manage a single parent captive solution.