Captive Insurance Programs

Captive insurance programs are an alternative to standard insurance protection. They are not new; but they are getting a lot more attention now than they had in the past.

Captives can provide the highest quality insurance protection for its owners. By banding together to create a true sharing of risk, the shareholders of a captive can control their insurance costs and avoid the volatility of the traditional insurance industry. Additional benefits are created through the increased assurance of coverage, the stabilization of premiums, and the improved management of risk through effective loss control and claims management.

Captives were created to satisfy the need of companies to obtain casualty insurance coverage at a predictable cost. They started when companies perceived that the commercial insurance industry was not responsive to their risk needs. The goal of these business owners was to:

• Increase buying power
• Allow member companies many of the same advantages of control generally afforded to only the largest companies

In addition to the tax deductibility of premiums paid into a captive, there is also the opportunity for the members to share in the underwriting profits and investment income of a captive.

Well run, financially stable, low loss frequency companies make ideal candidates for a captive alternative. If you are wondering if a captive alternative is for you, please call Mike Regan at Regan Cleary Insurance.

At Cleary, we will evaluate your business exposures and work with you to develop a comprehensive plan to safeguard your business. We are members of the National Association of Surety Bond Producers (NASBP), the professional organization for agents that also specialize in surety bonding. Give us a call today at 617-723-0700.