When we talk with people about captive insurance for the first time, they are usually so confused about what we are saying. They do not even know what captive insurance is all about. And it is understandable that many people may not know about how this process works. But it is a good thing for them to understand, because there are so many benefits out there for businesses that go in the direction of the captive insurance industry, instead of persisting with the same, typical insurance companies that have been causing them problems for decades.
Now you may be thinking that captive insurance is some type of fad, and it is not a real and useful way of doing business. But you would be mistaken. Captive insurance is a simple concept. The idea is that a business is going to take a financial stake in the insurance company that is giving them a policy. For instance, 20 businesses in the same city could decide to take a part stake in an insurance company that services that area. This company is now part owned by those businesses, but it is also an insurance company that offers real policies and customer service.
The beauty of captive insurance is that you are not a customer anymore. Your insurance company cannot dump you randomly, and they cannot massively increase your rates after one incident. If you are a mid-sized or larger business, then you will be wanting to see whether you can figure out a way to get into the captive insurance business. It is going to change the way that your business is insured. You will start seeing benefits from day one. And in the long run, you will be wondering how you ever put up with the typical way that insurance companies do business.