What is the difference between captive and excess insurance?

Captive and excess insurance are types of insurance coverage that provide additional protection for businesses, organizations, and other entities. Captive insurance is a type of self-insurance in which a company sets up its own insurer to provide protection from certain risks, such as liability or property damage. The company that sets up the insurer, or “captive,” pays premiums to the captive and can then use the funds to cover liabilities that would otherwise be too costly to cover out-of-pocket or through other means. Excess insurance, meanwhile, is insurance coverage that goes beyond the policy limits of a primary insurance policy. This type of insurance is designed to provide extra protection in the event of a catastrophic event or large claim that would exceed the limits of the primary policy. In Washington, both captive and excess insurance are subject to regulation by the Washington State Office of the Insurance Commissioner to ensure they are in compliance with state laws.

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What is the difference between captive and excess insurance?

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