Large, small, and medium-sized companies are faced with the difficult task of finding affordable and reliable insurance coverage that meets their needs. Workers’ compensation, general liability, and property and casualty coverage are imperative for companies of all sizes to have, but traditional insurance carriers may not give companies all of the coverage options that they want for an affordable price. Companies that want to save money and increase their coverage flexibility are turning to association captives in droves as an alternative to traditional insurance coverage.
Association captives offer several advantages over traditional insurance coverage, including:
- Extraordinary control over coverage limits
- Potential to save money
- Greater coverage flexibility
- Ability of participants to do their own underwriting and possess the rights to their investment income
The only real drawback to joining association captives is that each member will have to learn how to cooperate and co-exist with other members of the captive association. However, many companies consider this to be a very minor drawback when compared to the unprecedented control that a captive association gives them over coverage and limits. Large and small companies alike are making the choice to switch from conventional insurance coverage to captive association membership, and it is every company owner’s responsibility to determine whether or not it would be in their best interest to make a similar switch or stick with conventional insurance coverage.