Captive Insurance Services
Captive insurance companies are formed by groups, associations or companies. They use
the captive as an alternative to the commercial insurance market. By doing this they are able
to design coverage to fit their specific needs, employ risk management/loss prevention
techniques to reduce claims, reap the benefits by retaining profits, and are able to be in control
of their insurance requirements. For these reasons, and many others, captive insurance
companies are becoming more popular in the U.S. and around the world.
A detailed feasibility study will provide an explanation of the risks and benefits of such an undertaking.
Many captives are formed by companies or groups that are either unable to find the adequate coverage
or areunable to find it at reasonable cost. National Liability Management has over 25-years experience in
assessing the needs, and designing and managing captive programs that satisfy the exact needs of the client.
Your company or group may share in the management of the company. Captives in some cases have lower operating costs than traditional insurers. And you are able to directly control claims. Using loss prevention techniques that can be perfected based upon the company’s claims experience underwriting profits as a percentage may well exceed those in the commercial market. Those profits would be paid to you and provide a benefit that would otherwise be paid to disinterested stockholders. Surplus funds may be paid back to the owners. It is a reward for employing risk control measures and provides an incentive to continue quality operations.
In certain circumstances there are tax benefits realized through captive formation. Before deciding to form a captive for that reason your particular circumstances should be reviewed by an experience tax professional and legal counsel to be certain you qualify.
You maintain control over coverage, policy forms, claims management, loss control, policyholder communication, etc. That control is a very valuable asset, which helps to allow you to coordinate your coverage with the needs of your business.
In concert with actuaries, accountants, attorneys and other professionals NLM provides the input and services necessary for captive insurance clients to benefit from the ownership and operation of their controlled insurance program.
We can help you. Smaller, but more personalized. When you talk to an insurance professional at NLM you’ll be talking to a principal...not a stranger. The people that help you structure your captive are the people that will manage your underwriting, claims and loss prevention programs. Our clients are, and always will be, on a first name basis.
We help YOU maintain control over coverage, policy forms, claims management, loss control, policyholder communication and more.