What is the difference between captive and excess insurance?

Captive and excess insurance are two types of insurance policies offered in Louisiana. A captive insurance policy is a type of insurance contract specifically created to meet the needs of a particular business, organization, or individual. This type of policy is offered by an insurance company, which is owned or managed by the person or business that purchases the policy. Captive insurance can provide additional financial protection from the risk of expensive lawsuits or losses. In contrast, excess insurance is a type of policy that is purchased in addition to a primary policy, and provides coverage beyond the limits of the primary policy. This type of policy is intended to offer coverage for more expensive losses or liabilities. This policy pays out once the limits of the primary policy have been exceeded, and the excess policy will provide coverage for any additional costs. In summary, a captive insurance policy is a type of insurance specifically designed to meet the needs of a particular business, organization, or individual. On the other hand, excess insurance is a type of policy purchased in addition to the primary policy, and provides coverage beyond the limits of the primary policy.

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