Recently, Alternative Risk Financing options are gaining more attention. Before discounting these options, take a look into Captives. Companies that consider a Captive approach to risk financing desire more control, have a good safety record, and control their claims.
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As a business owner, you have a lot to manage. Some things you might do on ‘auto-pilot’ just because you have always done them that way. Does renewing your insurance fall into that category?
Of course, having insurance to cover the myriad of risks is vital to any business. However, utilizing an alternate risk financing option may be able to serve your business better. A Captive may be one of the alternate risk financing options that you should consider.
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Last week, we defined what an insurance captive is and the 3 most common types of captives. This week, we will explore if such a performance-based insurance product is appropriate for your construction company or if your insurance needs are best-fitted for a guaranteed cost program (i.e. traditional insurance). Often, the two will work together.
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Have you heard the term insurance captive and wondered what it was or if one was right for your construction company? Let’s take a closer look at the basics of captives.