Insurance, as the word suggests, is there to insure entities – either people or businesses –against the financial risk of possible contingencies that may occur in the future. While we cannot confidently predict events in the future, different types of insurance exist for certain situations, analyzing possible losses for each one. For example, your automobile insurance policy will not likely cover the possibility of your car being stolen by aliens, but it will likely cover possible damage due to collision. It is similar with most traditional forms of insurance. They generally have a specific set of ‘likely’ events against which you can elect to be insured. But in many cases, traditional policies may not cover what you want them to, or be unwilling to cover you due to excessive risk. If you want to cover parts of your business against some unusual contingency, something not usually covered, or you can’t afford regular business insurance, you may have to look for a company providing captive solutions for your insurance problems.
A major benefit of captive solutions is the flexibility they can have due to the fact that captive companies are privately owned by their policyholders. They often allow greater degree of policyholder control over their insurance, and they can be cheaper than the alternatives. Moreover, they can often provide captive solutions for cases in which coverage is hard to find due to differences in regulation or coverage across countries. Visit our website to know more.