Business Insurance Solutions

Captive Programs

A captive is an alternative insurance option. It is a wholly owned insurance company of an organization or company that insures all or a part of the risk of its owners. Patriot can assist in evaluating the viability of a captive arrangement for your firm. Captive owners can benefit from reduced insurance costs, access to reinsurers, an ability to insure the uninsurable and improved coverage and loss control. Such financial and risk management advantages have made captives the risk financing vehicles of choice for large organizations.

The minimum level of risk retention (i.e., deductible) needed to justify the costs of operating an insurance subsidiary means that captives may not be a viable option for smaller organizations. Smaller companies should evaluate the need for these programs through protected cell companies (PCCs) or rent-a-captive services that provide lower, fixed cost, alternatives.