Simple and Effective Solutions

Frequently Asked Questions

• Risk management made profitable, that’s all well and good when a captive has low losses. If I have claims, does that wipe out my assets in my Captive?

  Remember when policies are priced, claims are factored into policy pricing as insurance companies know they will have claims, captives are no different as they are licensed insurance companies.

• Is it necessary for me to engage in the services of a Captive Manager if I choose a captive solution for my business?

  It is recommended as a captive manager will have the experience in making sure that the captive has all the qualified service providers needed whether in-house or outsourced to keep the captive in good standing with all applicable regulatory and compliance needed.

• How can a captive be profitable when so many professionals are needed to manage them?

  This comes down to being in the right structure based on your business size. Captives have different structures based on what the business is seeking from a captive, that is why businesses gross 1 million or more in annual revenues per year can participate in a captive solution where the benefits exceed the cost.