A Brief Introduction to Captive Insurance
Captive Insurance is one of the leading and most profitable insurance products available today. Captive Insurance offers a comprehensive line-up of auto, home and renters insurance products from several top names in the business. This article will provide you with an overview of what Captive Insurance is, how it works and most importantly, how to get the best possible rates when you purchase a Captive Insurance policy. Once you’ve read this introduction, you will know how to approach Captive Insurance and be on your way to a new level of financial success.
What is Captive Insurance? Captive Insurance is an insurance product that provides “capture” protection for the policyholder. Captive refers to the business that is insuring the policy. Typically, this would be a landlord or tenant that has rented or leased a building or property. The primary goal of this type of insurance is to protect the policyholder’s investment; if the business owner were to become ill or pass away, the insurance company would not be responsible for covering expenses associated with the Captive Insurance policy.
What are the benefits of Captive Insurance? Captive Insurance offers policyholders many unique benefits that they would not normally receive from other insurance providers. These benefits are usually not available with other types of policies. For example, coverage on personal items such as jewelry and electronic equipment is usually excluded from regular policies. However, Captive Insurance policies cover the full range of items covered by standard rental or homeowner’s policies, including expensive equipment such as computers and cell phones.
How do I get started with Captive Insurance? Captive Insurance is available in several forms and policies can be customized with any specific type of policy need. In order to begin seeking out a Captive Insurance policy you will need to contact an experienced Captive Insurance broker. Once you have determined which specific type of policy you are looking for you will then need to start gathering information and working with a Captive Insurance agent to secure the policy.
What are the factors considered by the insurance company underwriting a Captive Insurance policy? Captive Insurance policies are more similar to life insurance than most other types of policies because the nature of the risk involved is somewhat unique. For example, a Captive Insurance policy is one that insures a single item, such as jewelry, which is located in a single building, such as a business. This type of policy is more risky than the policy that covers an entire building, because the business is considered to be one that is relatively isolated and less likely to experience damage or destruction. Therefore, the risk involved with insuring the building itself is lessened slightly.
What are the advantages of Captive Insurance? The advantages of Captive Insurance include the fact that they offer higher premiums than the policies that offer the same protection. The premiums tend to be on the higher side because there is a greater degree of risk involved with insuring items that are located in particular places. Another advantage of Captive Insurance is that the premiums tend to be lower when you are younger. The reason for this is that the older you get, the higher your premium rates will tend to be.