Are you one of those business handlers that have grown just so sick and tired of being held captive, held at random, at arms’ length, even at gun point, always at the mercy of the underwriters and their clerks when it came to the pivotal moment to lay claim to your lost or damaged goods and services, by your traditional insurance company? If your business is small to medium-sized and you have been operational for a number of years by now, you should be. Captive insurance, however, sets you free.
But it is not quite what you may have had in mind initially. Perhaps you have tried it out before, and congratulations if you did. But as you would have found out to your disappointment, the harsh reality about self-funding your insurance requirements, or self-insuring is that it remains an extremely costly exercise. And so many of you reading this right now had no alternative but to go back your insurance agents, cap in hand, and beg for their ‘input’.
Not advice, not entirely, because they will have had developed vested interests or close associations with your local traditional insurers. Every time a new client signs on the dotted line, these agents fetch yet another commission. And they continue to collect for as long as you are paying your premiums on time. But when it comes to submitting a claim, they hem and haw over all the likely financial shortfalls.
No, when you sign up for captive insurance, they don’t collect. They pay. Captive insurance is similar to, but not the same as, self-insurance. The difference is that your financial funding is being managed by a team of experts who have one common goal in mind. Your security and growth.