Determining Eligibility for Association Captives
Many industries in the United States have felt a big change when it comes to purchasing traditional insurance. For many companies, traditional insurance plans fail to offer the benefits they need for their specific industry or they may offer them in a bundle with coverage they simply don’t need. This can drive up premiums. Association captives offer an alternative option by allowing companies from a similar industry to band together and customize an insurance entity.
Who is Eligible?
Business owners should evaluate their current insurance expense and determine whether the cost of organizing an association captive would benefit the company. Some details that may make you a good candidate include:
- The need to insure low-profile risks.
- You’re having an issue finding the coverage you need for your company at a rate you can afford.
- Your company could benefit from the tax advantages that captives offer.
- You’re interested in getting catastrophic reinsurance to limit the financial exposure of your company.
- Your company is of significant worth and you wish to protect your wealth in order to pass it on to your dependents.
- You want to diversify your assets.
More and more companies are finding it advantageous to form association captives within their industry in order to gain the benefits that these alternatives to traditional insurance allow.
Find Out More Information
If you are interested in finding out more information on how association captives can help your company, it is important to talk to an expert in the field. They can help to guide toward the right choice for your business.