Business Insurance can also be a source of income.

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!