What is the difference between captive and excess insurance?

Captive insurance and excess insurance provide two different types of risk management. Captive insurance is when an organization owns and operates their own insurance company to cover their business risks and liabilities. This type of insurance is usually limited to specific risks and is only used within the organization. Captive insurance allows the organization to have more control over their insurance policies, as they can tailor them to suit their own needs. Excess insurance, on the other hand, is when an organization purchases insurance from an outside provider to provide additional coverage beyond the scope of their captive policy. This type of insurance may be used to insure against larger risks, such as catastrophic losses, or to fill in coverage gaps their captive policy may not cover. Generally speaking, excess insurance provides more comprehensive coverage than captive insurance, but it also tends to be more expensive. In Georgia, all insurance companies and captives must comply with the regulations set out by the Georgia Insurance Commissioner’s office. These regulations ensure that insurance companies and captives provide safe and reliable coverage for policyholders.

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What is the difference between captive and excess insurance?

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