What is the purpose of an insurance captive?

The purpose of an insurance captive is to provide risk protection for companies against unforeseeable liabilities. A captive is a type of insurance company that a company owns and controls. They are used to insure risks that may not be able to be transferred to a third-party insurer. This is important in Florida, because many of the areas are prone to natural disasters like hurricanes, floods, and other potential hazards. When a company owns an insurance captive, all of the premiums paid are retained within the company, which allows them to manage their own risk and not pay expensive premiums to outside insurers. Additionally, insurance captives can provide liability protection, both in the form of property damage and liability claims that may arise from the operation of a business. Captives are also helpful in managing claims, as they are able to more quickly reimburse policyholders for losses. In general, captives are a useful tool for companies of any size in Florida to protect themselves against risk and potential liabilities. Captives can help to manage liabilities, as well as reduce expenses associated with insurance premiums. By providing a layer of additional protection, companies can be more confident that they are protecting their assets against potential losses.

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What is the purpose of an insurance captive?

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