| |
|
|
| |
Reasons For Forming A Captive |
|
| |
|
|
| |
1. Control of Risk Dollars
The essence of risk finance is not to reduce premiums, but to make the process more cost effective and efficient. That can only be achieved with control. The insured/owner of a captive must work with the singular focus of controlling the money that is used for risk.
2. Expanded Coverage or limits
Often the coverage that is needed to meet commercial obligations and corporate responsibilities is not available, or is priced inefficiently in the traditional insurance market. Likewise, sometimes limits required by lenders and others are not sufficiently available. A captive or risk retention group can meet those needs. Properly organized and funded, a captive can offer any coverage or limits that are necessary, appropriate or desired.
|
|
| |
|
|
 |
|
