Captive Guide

Captive insurance can give a business greater control over risks it is already retaining, but forming a captive requires more than creating an entity and moving premium.

 

This guide explains how captives work, when they make economic sense, how direct and fronted structures differ, what formation and ongoing operation involve, and how captives can support large deductibles, difficult corporate exposures, warranties, service contracts and other customer-facing obligations.  The objective is not to make every company a captive owner.  It is to determine whether financing selected risks through a licensed insurance company would produce a better financial and strategic result than the status quo.