Insurance companies and plans evaluate risks and provide solutions to protect companies against the risks. Some of these risks can be unusual, complex or difficult to insure, which is where alternative risk insurance solutions come into play.
What is alternative risk insurance?
According to Haughn & Associates, alternative risk insurances are plans and programs designed to offer customizable solutions for difficult-to-insure, unusual or complex risks that your company faces. For example, if you are having trouble finding a traditional insurance plan which covers all of your risks at a reasonable price, then you can look into alternatives such as self-insurance, loss sensitive programs and captives to better protect your company from liability and loss.
Some benefits of these solutions include:
- Better control over the structure of your insurance program
- Increased tax efficiency
- More premium payment flexibility
- Fewer unaddressed risks
- Improved customization of policy forms
- Further optimization of risk-retention strategies
The best way to understand what is alternative risk and which solutions are the best for you is to reach out to an insurance agency that offers both traditional plans and alternative solutions. You can then go over your risks and find which programs are the best in terms of your coverage and costs. This can help you get the customized insurance plans that you need for less time and money.