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  • Writer's pictureLucas Nava

How would a captive insurance company benefit you and your business?

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When it comes to determining how much of a return on an investment into the establishment and managing of a captive to expect, analyzing the benefits that a captive could bring to your company is crucial. Although the benefits packages behind each captive tend to be unique to each serving organization, there are certain benefits that are fairly universal.

One major benefit of a captive insurance plan is having a stabilized budget. Everlong Captive Health Insurance helps customers form a strategy that helps them take an educated approach to gaining a better understanding of and insuring their risks. These risks tend to be financial in nature, such as an unexpected halting of a cash flow, a decrease in stock price, or a loss of earnings. While avoiding these risks through traditional business is preferred, companies must be prepared for when such a maneuver is not possible before deciding whether to retain or transfer the risk.

Another benefit to being a captive member is having the incentive to control losses. There are many times when a company will utilize meticulous risk-management strategies, but will receive no premium cost reduction in return. There's no point in reducing risk when doing so gives no benefit. Everlong Captive ensures that improving risk-management practices will directly impact the insured's insurance cost.

However, the greatest benefit of using a captive is having greater control. With a captive solution, especially Everlong Captive, control is given back to you, allowing you to purchase and implement the claims and policies that will save you money and benefit your employees. This, in turn, improves both your claims handling and your cash flow by achieving a lower premium cost and receiving tailored coverages to stabilize your budgets.

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