Captive Coverages

For businesses with a strong commitment to risk management and a desire for greater control over their insurance costs, a captive insurance program can be a powerful alternative to the traditional insurance market. A captive is a licensed insurance company that is owned and controlled by its insureds, providing a unique opportunity to customize coverage, reduce costs, and even generate underwriting profit.

At Fisher Horizon Business Group, we have the expertise and experience to help you navigate the complexities of captive insurance and determine if this innovative solution is right for your business.

Benefits of Captive Insurance

• ✓Cost Savings: Eliminate insurance company profit margins and retain underwriting gains
• ✓Customized Coverage: Design policies that precisely match your risk profile and business needs
• ✓Risk Management: Gain direct control over claims management and loss prevention strategies
• ✓Cash Flow: Retain investment income on reserves rather than paying it to insurance carriers
• ✓Tax Advantages: Potential tax benefits through deductible premium payments and tax-deferred investment income
• ✓Stability: Protection from volatile insurance market cycles and unpredictable premium increases

Types of Captive Programs

• ✓Single-Parent Captive: A captive owned by one company or group of related companies
• ✓Group Captive: A captive owned by multiple unrelated companies in similar industries
• ✓Cell Captive: A segregated cell structure that provides captive benefits with lower capital requirements
• ✓Medical Stop-Loss Captive: Specialized captives designed for self-funded medical plans

Is a Captive Right for Your Business?

Captive insurance is typically most effective for businesses with annual insurance premiums of $500,000 or more, though group captives can work for smaller companies. The key factors are:

• ✓Commitment to risk management
• ✓Stable claims history
• ✓Financial capacity to capitalize the captive

Our feasibility analysis will help you determine if a captive is the right choice and provide a clear roadmap for implementation.

Our Captive Insurance Services

At Fisher Horizon Business Group, we provide comprehensive captive insurance services, including:

• ✓Feasibility studies and cost-benefit analysis
• ✓Captive formation and domicile selection
• ✓Ongoing management and administration
• ✓Regulatory compliance support
• ✓Claims administration
• ✓Reinsurance placement

We partner with leading captive managers and domiciles to ensure your captive operates efficiently and effectively.