When you and your company are faced with difficulties in acquiring insurance, it is quite daunting to arrive at a cost-efficient resolution. Traditional avenues for the acquisition of insurance may be far too costly due to the inherent risks associated with your business, making it necessary to explore the alternatives. One such alternative — captive solutions — has proved to be quite an effective and cost-efficient means to solve any number of issues relating to insurance, including:
- Rising premium costs
- Difficulty acquiring coverage
- Variable coverage across geographic locations
- Credit rating structures that are inflexible
There are, of course, significantly more issues that captive solutions may be able to resolve, but there are certain issues that seem to crop up with greater frequency. These issues require an alternative solution that enhances risk management while allowing you to exert a greater deal of control with regard to your insurance.
Resolve a Number of Difficult Issues
Captives are owned by private entities, meaning that you and your company can reap significant benefits through the reduction of the policy’s cost. Traditional insurance markets may offer a premium that is significantly higher than what the captives can offer, if the traditional insurance market can even offer a policy at all. If you are involved in a business with significant risks, turning to captives may be the best option for you and your company.