Why Should My Business Join a Group Captive?

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As a business owner, it is inevitable that you will have to buy insurance. And in many instances, businesses will end up paying premiums that outpace the real cost of their claims. This is because with traditional insurance you end up subsidizing other people's claims. Meaning that even if your claims are minimal, you will still end up paying higher prices. For many business owners, this seems unfair and can be a cause of stress.

Fortunately, there is an alternative to the traditional insurance route. This is called Group Captive insurance. Group Captive Insurance can help you cut down insurance costs and decrease the amount of risk within your business.

What is a Group Captive?

Group Captives are groups of businesses that come together to create their own insurance agencies to manage risk and reduce costs. Businesses and Group Captives will usually have low claims which means their premiums are much lower than other businesses that practice poor safety and have high claims. In simple terms, it is basically an insurance agency owned by its members that provides its members with benefits.

If all this sounds appealing to you, keep reading to learn more reasons why your business should join a Group Captive.

Cost Effective

As mentioned previously, one of the biggest reasons that businesses will look into Group captive insurance is because they provide lower premiums. Since multiple businesses come together in a Group Captive, they can share risks which helps lower premiums be negotiated. Group Captive insurance will also allow your business to profit off of claims instead of traditional insurance agencies profiting off of them. So, your unused premiums can be distributed back to the members. So, when you have a good year, you will be able to profit from it.

Customization of Insurance Coverage Provides Risk Management

Sometimes, traditional Commercial Insurance is just too general for your business's needs. You may decide that you need protection against certain risks, as many businesses have risks that are of greater importance than traditional insurance covers. This is where Group Captive Insurance can lend a helping hand. By joining a Group Captive, you can create customized protections that cater to your businesses greatest risks greatest risks. This will ensure that your business can be covered from unexpected losses.

Avoid Market Fluctuations

While traditional insurance premiums face market changes, Group Captive insurance has more stable premiums that are less likely to be subjected to changes. Premiums through Group Captive insurance are influenced by the business's losses, which can make them much more stable. With stable premiums, your business will have the chance to save money in the long-term and avoid traditional insurance markups.

Come Together with Like-Minded Business Owners

When joining a Group Captive, you are getting connected with like-minded business owners who carry similar goals and values as you. This means you will be able to prioritize risks you share to ensure they are covered. Having similar risk profiles means you can come together and discuss safety plans to prevent loss. Overall, this will lower premiums and help your business have safe practices that reduce risk.

Group Captive insurance can help you and your business take charge of your premiums, while also managing risk. If your business prioritizes safety, joining a Group Captive will put your business at an advantage for many years to come. So, consider joining a Group Captive and connect with business owners like you!

Ready to make your move? Contact us today!

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Exploring Examples of Captive Insurance Companies

March 18, 2025

Over the years, captive insurance has become very popular amongst businesses and multiple industries. This is because using captive insurance helps with managing risk more effectively, limiting costs, and giving business owners more control over their insurance policies. With so many businesses seeking out new ways to insure themselves, captive insurance is gaining more traction than ever. Still curious about captive insurance? In this blog post, we are going to explore notable captive insurance examples of companies that use captive insurance and the many industries that benefit from it. Notable Companies and Industries Using Captives Large Scale Businesses Many large-scale businesses use captive insurance models because they have more significant risks that need to be protected. With captive insurance, businesses can tailor their coverage to their specific needs and ensure that assets are protected. Captive business models are also much cheaper than traditional insurance which can be a great benefit for large-scale companies. Captive Insurance Examples: Google, Apple, and General Motors. Healthcare and Pharmaceutical Industry It is not uncommon for healthcare providers and pharmaceutical companies to be subject to high-risk scenarios. This could include things like malpractice claims or issues with patient safety. Using captive insurance allows businesses to mitigate these risks and cover malpractice insurance, employee health insurance, and other operational risks. Captive Insurance Examples: Johnson and Johnson, Hospitals, and Medical Device Manufacturers Energy and Gas Companies One of the many industries using captives is energy and gas. These companies involved in sectors like oil, gas, and renewable energy can face a lot of potential risks. Whether it's environmental liabilities, offshore drilling accidents, or natural disasters, these risks must be covered. And with captive business models, there's no better way to manage these risks. Being able to self-insure reduces reliance on external insurance and increases the company's control over claims and premiums. Captive Insurance Examples: Shell, BP, and Chevron Retail Chains and Manufacturing Large-scale retailers and manufacturers face a lot of different risks. This could be disruptions in supply chains, product recalls, cyber risks, and liability claims. Many big retail chains will use captive insurance to mitigate risks and give themselves greater protection in their operations. Captive insurance allows businesses to maintain flexibility in their coverage and manage their premiums more efficiently. Captive Insurance Examples: Walmart, Target, and Amazon Transportation and Logistics Companies in the transportation and Logistics sectors oftentimes have very high risks relating to things like cargo damage, accidents, theft, and liability. Using captive business models allows for these businesses to run more smoothly. By making the claims process much more efficient and self-insuring risks, transportation and logistics companies can feel secure. Captive Insurance Examples: FedEx, UPS, and DHL Choosing the Right Captive Insurance Partner Captive insurance provides many benefits to businesses of any size. Whether you are looking to take control of your insurance claims, save money, or have tailored coverage, captive insurance can be a great choice. And it's no secret that industries using captives are typically more successful. But, partnering with a trusted provider is crucial for success. There are many top players in the world of captive insurance, however, one captive insurance provider that really stands out and provides industry-leading services is Captive Resources. KT Captive Insurance works as a partner to Captive Resources to give expert advice, ensuring businesses in all sectors can navigate the complexities of captive insurance. Working with KT Captive Insurance your business can have access to the best captive insurance solutions out there. Allowing you to finally take control of your insurance program. No matter what industry, captive insurance plays a role in protecting vital business assets. Without a captive business model, many businesses would struggle immensely with large claims and risks. Now that you know the many successful businesses and industries using captives, you can see how they make a big difference. So, check out captive insurance and take control of your business's insurance policy.