What is a Captive Insurance Company?
Case law defines a captive insurance company as a "wholly owned insurance subsidiary." In less formal language, a captive is an insurance company that you own.
Why Would I Form a Captive?
To cover risks that aren't covered by traditional insurance polices
Aren't My Current Policies Adequate?
Probably not. Most commercially available policies have significant and well-known exemptions.
How Long Have Companies Been Doing This?
The first captives were formed in the 1950s because companies couldn't find insurance coverage for certain risks. The practice is now widespread; there are more than 5,000 captives worldwide and over 30 US states have legislation allowing for the formation of a captive insurance company.
Would You Like to Learn More?
We'll be hosting a webinar on captives on Friday, October 31 at 9AM CST. You can sign up at this link.
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