What many in the business world are finding today is that they have been leaving money out on the table by just doing some things without thinking. There are, of course, some costs that people never question. They have to have insurance, right? They just pay the bill to ensure they can rest easy at night. What if there were other options to allow business owners to become more efficient? A captive insurance broker might tell you that these options exist. More, they might tell you that many industries are using captive insurance to help their companies save money while getting better coverage.
What is captive insurance coverage? Truly it is quite simple. Rather than a company paying premiums every month or year to a big insurance company that covers lots of different types of entities, the company will join together with other companies in the same industry to come up with an insurance structure that makes sense for all. The upside is that the companies in the industry own the insurance then. They get to share in the profits rather than lining the pockets of the big insurance industry players.
In addition to the big cash savings that companies can gain by going with this type of insurance, some have noted that they also tend to get better insurance coverage as a result. What does the standard big insurance company know about the horse business, for instance? It may turn out that the race horse owners and stable operators themselves have more understanding in order to correctly identify the risks that these entities face. They can then better identify how much they need to pay to insure so that there is less waste.
If there was a promise that your company could save more money on one of its big expenses while also getting a better service, would this not be something that you would want? Many companies today are saying “yes” to this, asking for captive insurance instead of standard coverage. They’re wising up to the fact that insurance companies have been taking advantage of them for years.
