Captive insurance companies are a great risk management solution to the shortfalls or omissions of traditional insurance policies. However, not all companies can create their own captive for various reasons, but segregated cell captive insurance is a great alternative.
Smaller Companies Can Participate
Creating a stand-alone captive requires significant time and capital investment that smaller firms are often unable to spare. Segregated or protected cell captives, however, provide the necessary administrative structure and regulatory compliance apparatus while still enabling companies to form their own captives within.
Benefits Are the Same
Some of the benefits of creating a captive insurance company are reduced insurance costs, coverage of additional risks not written by traditional insurance, more control over the claims process, and quicker claims settlement. Fortunately, companies that would otherwise be unable to create their own captives can still reap the rewards through segregated cell captive insurance.
Assets Are Isolated
Even though multiple companies may be serviced under the same captive, protective cell captive insurance does not share assets or liabilities between unaffiliated entities. If fact, protected cell users are insulated from one another by statute, eliminating the potential risk from losses outside the company in the way traditional insurance policies operate.
It’s important to know about segregated cell captive insurance so you can decide if it’s the right alternative or addition to existing traditional insurance policies for your business.