Captives/Self Insurance

Exude’s creative captive insurance solutions will help you to manage your organization’s risks on your own terms while taking control over the economic cost of risk to your organization.

Captive Insurance Explained:

A captive is a special type of insurance company set up by a parent company, or group of companies, to insure risks. Many companies turn to captive solutions as a practical option between fully insured products and fully self-funded. Learn more about captives HERE.

Benefits of a Captive Program:

  • Cost reduction/stability
  • Expanded coverage
  • Investment income
  • Improved loss control
  • More direct control over claims handling
  • Policy design flexibility

Before going down the road of determining whether a captive is a good fit for you, we recommend that quality due diligence be performed. Our industry experts work with you to assess your needs and recognize exposures specific to your organization. Through understanding these exposures, we are equipped to create a detailed plan to address and reduce the impact of risks to your organization. From here, we can help gauge the feasibility of a captive solution for interested organizations.

Once we’ve determined that a captive solution is right for you, we will assist with:

  • Dividend payments to owners once the captive is sufficiently collateralized
  • Calculation of rates and claims reserves
  • Successive years expected losses vs collateral requirements
  • Monitoring Third Party Administrator’s performance and effectiveness in settling claims
  • Claim Management and Customization

Some of Our Captive Options Include:

Segregated Cell (Rent-a-Captive) structure– Depending on your organization’s growth trajectory, your firm may want to consider a segregated cell captive.  This structure allows for calculation and program benefits to be based upon your individual performance, and it provides more control.  We would need to discuss the collateral required and other factors that need to be considered before entering into this structure.

831b Micro Captives – For deferred compensation and retaining earnings, 831b’s can be used in a variety of ways to enable your firm’s management/owners to protect the organization for less frequent losses and provide a structure to maximize retained income to those individuals.  The nuances should be discussed at length but we have seen this structure work for other business owners.

Contact us today to see if a captive solution is right for your organization!