You have decided to make the move to captive insurance. Congratulations are in order because this is a hefty decision to make. Face it, the move away from the established commercial industry is a scary one.
Great Choice and Long History
Nevertheless, you have made a good choice to switch to a captive insurance group. It is going to mean more flexibility, fewer premium payments to third-party companies, and a guaranteed dividend to captive investors.
However, you can’t do it alone. There are many pieces to make the move to captive insurance. And that’s why you need the resources of a manager. Companies like Captive Resources offer managerial services to make the transition as smooth as possible. You’ll need that to keep your sanity and ease the fears of your employees.
If you’re not sure why you need a captive insurance manager, here are three reasons to consider.
They Help Choose the Right Captive
There are many captive insurance types on the market right now, so you will need help choosing the right one for your business. For instance, if your premiums will be less than $2.2 million, then you will need to register as a micro captive. If you want to work with similar industries in your area, then the manager needs to establish an industry captive for all of you.
They Conduct Feasibility Studies
You may want to move toward captive insurance, but your employees may not. Or, you may not have the capital needed for initial investment. The captive manager can help you conduct a feasibility study to determine if captive insurance will be a benefit or not and what it may cost.
They Assist with Captive Applications
Although a captive is an alternative to commercial insurance, there are still state and federal regulations to follow. In addition, you need to fill out an application to establish yourself as a captive. The manager works with you to set all of this up.
In conclusion, thoroughly research captive management companies before you make your choice.