To keep your company protected against the many threats that exist in your industry, you require a comprehensive insurance policy. Of course, this is not always easy to obtain. Traditional insurance can create plenty of gaps in your protection, leaving you open to a number of commonplace threats. To avoid this, alternatives like a pure captive insurance option might be a good fit. Also called a single-parent policy, this is insurance provided and controlled by a third-party private insurer. There are several advantages to this arrangement.
Basic Benefits of Pure Policy
One of the largest benefits reported by experts who utilize a single parent captive policy is the cost. When compared to traditional fees related to insurance like underwriting, this alternative offers a more affordable solution. This, in turn, leads to more control over your company’s cash flow and an ability to use part of your income to invest in the future of your enterprise. These policies often include more flexibility and can help you minimize your risks through this level of control. Additional benefits can include:
- Incentives for loss control
- Data analysis and forecasting for growth
- Time-tested option with tangible results
- Increased coverage options
Evaluating Your Company
A pure policy can be advantageous for companies operating in a number of different industries. Review the basics of this type of arrangement and learn more about how it works. Evaluate your business and determine if this is right for you.