Captive Insurance

Is captive insurance right for your business?
Take The Quiz
Or speak with a Captive Manager at 888.599.5553
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Captive Insurance

Is captive insurance right for your business?
Take The Quiz
888.599.5553

Comprehensive Insurance with Financial Efficiency

RMC offers a wide range of personal insurance products throughout the United States with an emphasis on homeowners, automobile, umbrella, and inland marine insurance.
RMC Group offers personal insurance to individuals and families throughout the United States. We have access to the nation’s
leading property and liability insurance carriers, which enables us to offer multiple coverage options for products such as homeowners, automobile and inland marine.
Plus, our proposal process makes it easy for you to understand your options and obtain the coverage most suitable for your needs.
Captive insurance is a tool to manage the insurance risks of operating a business, while providing the business owners substantial benefits beyond the purchase of commercial insurance.

Captive insurance is obtained through a captive insurance company (“captive”), which is an insurance company, created for the primary purpose of insuring the risks of an operating business and its affiliated companies. Establishing a captive allows the operating business to take control of its risk management by allowing it to insure risks for which coverage may not be available in the commercial market or may be prohibitively expensive.

Captive insurance is often less expensive than commercial insurance, because it can be tailored to the needs of the operating business. In addition, because the captive and the operating business generally share the same or a related owner, the captive can be a profit center, instead of a drain on resources.

Comprehensive Insurance with Financial Efficiency

Captive insurance is a tool to manage the insurance risks of operating a business, while providing the business owners substantial benefits beyond the purchase of commercial insurance.

Captive insurance is obtained through a captive insurance company (“captive”), which is an insurance company, created for the primary purpose of insuring the risks of an operating business and its affiliated companies. Establishing a captive allows the operating business to take control of its risk management by allowing it to insure risks for which coverage may not be available in the commercial market or may be prohibitively expensive.

Captive insurance is often less expensive than commercial insurance, because it can be tailored to the needs of the operating business. In addition, because the captive and the operating business generally share the same or a related owner, the captive can be a profit center, instead of a drain on resources.

Why Captive Insurance?

Many business owners have formed a captive insurance company and realized significant benefits. However, the decision whether to form a captive is often clouded by misconceptions and a failure to recognize the advantages of owning your own insurance company. A captive insurance company is an excellent risk management tool. In addition, it can be a profitable business and can offer significant benefits to the owner(s) and insured(s).

A captive insurance company enables a business owner to better manage insurance risk. By establishing a captive, a business owner is able to tailor coverage to the insurance risks that are specific to the business. In addition, the business is not limited to coverages that a commercial insurer is willing to offer. It can also reduce insurance expenses by eliminating commercial insurance company costs, such as commissions, overhead expenses, and profits.

A captive insurance company provides greater control over a business's insurance costs. Premiums paid to a captive are based on the claims experience of the associated business. By forming a captive insurance company, a business owner can control the investment of unearned premiums and reserves, instead of paying these amounts to an unrelated commercial insurance company. Owning your own insurance company also gives the business owner control over the claims adjudication and payment process, which can result in a more efficient and expeditious process.

Why Captive Insurance?

Many business owners have formed a captive insurance company and realized significant benefits. However, the decision whether to form a captive is often clouded by misconceptions and a failure to recognize the advantages of owning your own insurance company. A captive insurance company is an excellent risk management tool. In addition, it can be a profitable business and can offer significant benefits to the owner(s) and insured(s).

A captive insurance company enables a business owner to better manage insurance risk. By establishing a captive, a business owner is able to tailor coverage to the insurance risks that are specific to the business. In addition, the business is not limited to coverages that a commercial insurer is willing to offer. It can also reduce insurance expenses by eliminating commercial insurance company costs, such as commissions, overhead expenses, and profits.

A captive insurance company provides greater control over a business's insurance costs. Premiums paid to a captive are based on the claims experience of the associated business. By forming a captive insurance company, a business owner can control the investment of unearned premiums and reserves, instead of paying these amounts to an unrelated commercial insurance company. Owning your own insurance company also gives the business owner control over the claims adjudication and payment process, which can result in a more efficient and expeditious process.

Top Captive Insurance FAQs

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Top Captive Insurance FAQs

Types of Captive Insurance Coverages

LOSS OF KEY EMPLOYEE

Covers costs to replace a covered key employee, including fees paid to a recruiting firm, hiring or relocation bonus and retention bonuses paid to current key employees to prevent loss.

LOSS OF CONTRACT

Covers lost revenues resulting directly from the loss of a key contractual relationship.

LOSS OF PRIVILEGE

Covers lost revenues resulting directly from the insured’s loss of privilege to work at a healthcare facility.

ADMINISTRATIVE ACTIONS

Covers losses (including governmental fines) resulting from claims arising from regulatory breaches and violations (e.g., HIPAA, ERISA, COBRA, etc.).

CYBER LIABILITY

Covers losses arising from first and third party risks associated with networks, ecommerce, the internet and other computer or electronic media.

COLLECTION RISK

Covers losses arising from the failure of a debtor to pay a debt after demand, including the failure of a customer or client to pay for goods delivered or services performed, including the costs and expenses incurred in attempting to recover such debts or payment.

DIRECTORS & OFFICERS LIABILITY

Covers claims asserted against the insured and officers and directors of the insured in connection with the performance of a person’s duties as an officer or director of the Insured.

EQUIPMENT BREAKDOWN & BUSINESS INTERRUPTION

Covers damages and expenses incurred as a result of equipment breakdown, including breakdowns caused by power surges, mechanical breakdown, motor burnout, boiler damage and operator error.

FIDUCIARY LIABILITY

Covers claims asserted against an Insured alleging the breach of a fiduciary duty.

GENERAL LIABILITY - DIFFERENCE IN CONDITIONS

Covers losses resulting from occurrences that are normally excluded from coverage under a standard general liability policy.

HOURLY WAGE VIOLATIONS

Covers claims against an insured alleging the violation of any federal, state or local law governing the hourly wages to be paid to an employee.

LOSS OF LICENSE

Covers the cost and expenses incurred by an insured in connection with the suspension or revocation of professional licenses, other business licenses, and/or permits.

POLLUTION / ENVIRONMENTAL HAZARDS

Covers costs and expenses resulting from the contamination of the environment by substances regarded as pollutants.

REGULATORY CHANGE

Covers lost revenues and costs and expenses incurred by an insured as a result of a change in laws and regulations that significantly affect the business of an insured.

REPUTATION RISK

Covers lost revenues and the costs and expenses incurred by an insured caused by the publication by a third-party of a statement or opinion that negatively affects an Insured’s reputation.

SUPPLY CHAIN / TRADE DISRUPTION

Covers lost revenues and costs and expenses incurred by an Insured in connection with the disruption of the Insured’s supply chains from foreign jurisdictions caused by the actions or inactions of a foreign government.

Types of Captive Insurance Coverages Available

LOSS OF KEY EMPLOYEE

Covers costs to replace a covered key employee, including fees paid to a recruiting firm, hiring or relocation bonus and retention bonuses paid to current key employees to prevent loss.

LOSS OF CONTRACT

Covers lost revenues resulting directly from the loss of a key contractual relationship.

LOSS OF PRIVILEGE

Covers lost revenues resulting directly from the insured’s loss of privilege to work at a healthcare facility.

ADMINISTRATIVE ACTIONS

Covers losses (including governmental fines) resulting from claims arising from regulatory breaches and violations (e.g., HIPAA, ERISA, COBRA, etc.).

CYBER LIABILITY

Covers losses arising from first and third party risks associated with networks, ecommerce, the internet and other computer or electronic media.

COLLECTION RISK

Covers losses arising from the failure of a debtor to pay a debt after demand, including the failure of a customer or client to pay for goods delivered or services performed, including the costs and expenses incurred in attempting to recover such debts or payment.

DIRECTORS & OFFICERS LIABILITY

Covers claims asserted against the insured and officers and directors of the insured in connection with the performance of a person’s duties as an officer or director of the Insured.

EQUIPMENT BREAKDOWN & BUSINESS INTERRUPTION

Covers damages and expenses incurred as a result of equipment breakdown, including breakdowns caused by power surges, mechanical breakdown, motor burnout, boiler damage and operator error.

FIDUCIARY LIABILITY

Covers claims asserted against an Insured alleging the breach of a fiduciary duty.

GENERAL LIABILITY - DIFFERENCE IN CONDITIONS

Covers losses resulting from occurrences that are normally excluded from coverage under a standard general liability policy.

HOURLY WAGE VIOLATIONS

Covers claims against an insured alleging the violation of any federal, state or local law governing the hourly wages to be paid to an employee.

LOSS OF LICENSE

Covers the cost and expenses incurred by an insured in connection with the suspension or revocation of professional licenses, other business licenses, and/or permits.

POLLUTION / ENVIRONMENTAL HAZARDS

Covers costs and expenses resulting from the contamination of the environment by substances regarded as pollutants.

REGULATORY CHANGE

Covers lost revenues and costs and expenses incurred by an insured as a result of a change in laws and regulations that significantly affect the business of an insured.

REPUTATION RISK

Covers lost revenues and the costs and expenses incurred by an insured caused by the publication by a third-party of a statement or opinion that negatively affects an Insured’s reputation.

SUPPLY CHAIN / TRADE DISRUPTION

Covers lost revenues and costs and expenses incurred by an Insured in connection with the disruption of the Insured’s supply chains from foreign jurisdictions caused by the actions or inactions of a foreign government.

Example Industries We Insure

Agriculture

Contractors

Healthcare

Manufacturing

Transportation

More...

Example Captives We Manage

Agriculture
Contractors
Healthcare
Manufacturing
Transportation
More...

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