Keep what you are already paying for risk.
You carry risk every day that no policy covers. When it lands, it comes out of your operating account. A captive puts a company between you and that bill, and the company is yours.
Nine questions. A straight answer.
This reads your risk and premium profile, not your tax return. It will tell you one of three things: worth a conversation, probably early, or let us look closer. Your answers are not shared with anyone until you choose to send them.
If you would rather talk it through, the discovery call is at the bottom of this page.
How is your business organized?
How long have you been in business?
Roughly, what is your annual revenue?
Five years from now, how much bigger is the business?
As you grow, what happens to your margins?
How would you describe your long-term debt?
How many people do you employ?
What do you pay each year for your existing coverage?
Most years, do you pay more in premiums than you ever get back in claims?
Pick your industry. See the risks the market leaves with you.
What it looks like when it works.
A staffing company administering tens of millions in payroll carried a workers' compensation premium in the millions. To bring it down, they took a high deductible, and the carrier demanded collateral. Over three years, more than two million dollars sat in letters of credit and cash the carrier was in no hurry to release.
They formed their own insurer, paid the premium to it, and bought reinsurance for the catastrophic layer.
The money that used to leave as premium and collateral now sits in a company they own, funding the same losses at the same layer, with the difference retained instead of surrendered.
Dental practices routinely warrant their work. When a crown or an implant fails, the practice redoes it at its own cost. Nobody insures that, so it comes out of the practice's pocket, quietly, every year.
In 2015 Fortress introduced captive insurance for dental warranties. The practice's own company now insures the warranty it gives every patient.
A funded warranty, a reason for patients to stay, and reserves that belong to the dentist rather than to a risk that was never named.
Thirty minutes with a principal.
We will talk through your business, your risks, and what you pay for coverage today. If a captive is not a fit, you will hear that on the call. Bring your advisor if you have one.