Understanding all of the options available to you is key when it comes to selecting appropriate insurance for your business. Though some of the plan options presented to you may seem straightforward, there are certain alternatives that may not be offered right away. For example, you may want to approach insurance from a different perspective than is considered traditional. The decision to use a rental captive insurance program is one that may yield you a number of benefits.
How a Rental Captive Works
Essentially, a rent a captive is a model that allows participants in the captive to share the risks involved with insurance. The entire structure of this plan is very similar to the kind that is traditionally offered by larger commercial organizations. The general idea is that a group of brokers or agencies will work together in order to rent out services to businesses in need of a policy. The biggest benefit is that all of the participants are able to gain potential for the profits of investment income and underwriting. Other advantages include:
- Flexibility and coverage for a variety of specific risks
- Funds for capitalization are not mandatory
- Reduced management fees
Explore All the Alternatives
Though you might believe you have all of the information you need to select the right insurance program for your business, there are always alternatives available. Research how a rental captive might help you and learn whether or not this is a choice that will work for your future goals.