Work Comp Captive Arrangements

  Captive Arrangements Can Create Profits

A worker's compensation captive arrangement can provide increased savings, better asset protection, greater underwriting control, improved cash flow, and the opportunity to participate in underwriting profits and investment income.

The Insurance Shop helps companies with large premiums create and/or rent workers compensation insurance captives.  The Insurance Shop currently owns and operates our own insurance captive and can rent our captive or assist in the set-up and maintenance of a client owned captive.

Client owned captives are typically controlled by the captive owners (client), who are the principal beneficiaries.  They operate much like traditional insurance companies. Captives pay losses, perform actuarial reviews and potentially derive underwriting profits and earn investment income on the funds held to pay claims. In most cases, the owners actively participate in decisions influencing the underwriting, operations and investments that drive their insurance coverage.  While this may seem complex on the surface, the insurance carrier fronting the captive can incorporate these services into the management process.

Rent-a-captives are facilities for clients too small to structure their own single parent captive. They, in essence, "rent" the surplus of another company by paying a fee. The rent-a-captive insures the risks of its renters and returns potential underwriting profit and investment income to them. Claims are handled by a third-party administrator (TPA). Rent-a-captives are operated as income-producing ventures for the companies or "renters" who participate for insurance coverage.

We currently have a turn-key captive programs established for the following entity types:

• Contractors and Construction

• PEOs/ASO's and Staffing Companies

• Manufacturing

• Restaurant Chains

• Hospitals and Nursing Homes

• Retail and Wholesale Operation

To learn more about captive arrangement and find out if a captive might be right for you contact: