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Captive Programs from Cal-Nevada Insurance Agency

Some companies have the financial capital to insure themselves. By deploying reserves in this way, businesses can create their own “captive insurance programs” specifically tailored to their unique risks, and they can keep much of what would be spent on insurance premiums in house.

Cal-Nevada Insurance Agency is able to help businesses in San Francisco and throughout the northern California, Arizona and Las Vegas, Nevada areas evaluate the suitability of creating a captive insurer. If a captive program fits, we can help you design and manage this special insurance plan.

Types of Captives

There are many types of captive insurance companies, including:

  • Single-Parent Captives, which insure parent companies’ own subsidiaries;
  • Association Captives, which are owned by trade groups that insure their members; and
  • Group Captives owned by multiple companies that typically insure a common risk.

There are other captive-like configurations, including lower-cost offshore options, which we can discuss if this type of risk program is of interest to you.

How a Captive Works

Your subsidiary companies or insured members pay their insurance premiums to your captive instead of to an outside insurer. The captive provides agreed-upon insurance coverage just the way an insurer would. Claims are filed through a similar system, and payments for losses are made to the subsidiary or member as they would be under a commercial insurer.

Under some captive structures, a business can purchase reinsurance directly from the provider, which can save on commission and premium costs. Your premiums are calculated based on your own loss history instead of overall industry loss costs, which can mean much better rates for good risks than you’d find on the open market. A captive can design coverage to target the particular needs of each policyholder, so policies are more flexible than you might find from a commercial insurer.

Captives can yield cash flow benefits, claims payment advantages, and improved accessibility to coverage.

For further information or to schedule a meeting with an advisor, contact us at (866) 670-5948, or e-mail us at info@calnevadains.com