What to Know About Rental Captive Insurance

Choosing business insurance can be difficult. If youre unsure about what type of insurance policies you need, you may want to give some thought to rent a captive program. Not only are they flexible but they protect against specific risks. Here is what you need to know about rent a captive insurance.

Why Do Businesses Use Rental Captives?

A rent a captive insurance company allows businesses to rent its services without managing the captive company. Under this model, participants share the risk. It may feel similar to obtaining insurance from a commercial provider. Often, larger insurance companies will have an insurance captive program to offer service to others.

In a rent a captive insurance program, every participant is separated. They do not share the same premiums, investment income or losses.

What Are the Benefits of Rental Captives?

Companies with difficult risks may find rental captive insurance to be more useful and beneficial. The administrative costs tend to be less, there is more flexibility and fewer restrictions if you decide to opt-out of the program. You can still develop your program in the meantime.

When it comes to your companys risk management program, the right insurance should always be a priority. For some businesses, especially those with higher risks, rental captive insurance is more beneficial and flexible.