Captive Insurance in Tampa, FL
Captive insurance can offer an innovative approach to risk management and loss control that may provide a tailored way to handle insurance needs. By creating their own insurance subsidiaries, businesses can potentially gain greater control over their insurance programs, which may lead to overall cost savings and customized, tailored coverage.
What Is Captive Insurance? 
Captive insurance refers to a wholly owned subsidiary controlled by its insureds. Unlike traditional insurance, where businesses purchase policies from third-party insurers, a captive insurance company is created and operated by the insured entities themselves. These arrangements can be structured in various forms, including single-parent, group and association captives, each catering to different organizational needs and risk profiles.
This approach can allow businesses to insure their own risks and potentially benefit from underwriting profits and investment income. Furthermore, insuring themselves through this method may help businesses establish and maintain ideally tailored coverage that is suited specifically to their needs and preferences. This may lead to insurance that is optimized for a company’s unique circumstances and cost-effectiveness.
How Does it Work?
The process of establishing a captive insurance company generally involves the following key steps:
- First, a business or group of businesses identify the need for a captive and conduct a feasibility study to assess the potential benefits and costs.
- Next, if the decision is made to proceed, the captive is formed as a legal entity.
- The captive then underwrites the risks of its parent company or companies, collecting premiums and paying out claims as needed.
We’re Here to Help
At Clearwater Partners in Tampa, FL, we are well-versed in the subject of captive insurance. Contact us today to learn more about your options.