Every industry poses unique risks to business owners. Whether you run a large-scale corporation or a startup, you need to understand what risks you’re most likely to encounter. This will make a world of difference when the time comes to pick an appropriate insurance plan. Instead of following the traditional route, you may want to look toward alternatives like a rental captive program. There are some key advantages that can come along with this type of insurance plan.
What Is Rent-a-Captive Insurance?
Taking out a policy through a commercial insurance provider might seem like the only option you have, but using cell captives can prove to be a rewarding choice. A rental captive allows investors enhanced control over the risks that they take on with insurance. What’s more, this type of policy reduces the total costs that are involved with your risks. Many also opt for this type of arrangement because it can generate both profits from underwriting and standard investment income. Additional advantages that come with a rental captive agreement include:
- Better control over your working capital
- Access to more affordable insurance plans
- Funding for high-risk endeavors that are otherwise difficult to insure
Understand All of Your Options
There are a number of different ways to go about insuring your business. As long as you take time to review all of the options available, you will have an easier time putting together a plan that effectively covers all of your potential risks.