The benefits of forming an association captive insurance company are numerous and significant. However, as with any business decision, careful consideration is necessary before moving forward. The rewards are real, but according to Caitlin Morgan Insurance, the resources required to create and maintain a captive program are also an important part of the decision.

Due to the process used to implement this program, it isn’t right for all businesses. That’s why considering the factors here is so important.

What Considerations Should You Make?

Before jumping into or shying away from association captive insurance for your business, do your due diligence and get to know some of its biggest pros and cons. You will want to consider who the members of the association need to be and what types of insurance those members will need.

What Are the Advantages Offered?

There are some key advantages to this insurance model:

  • Reduced reliance on commercial insurance (which is often cost-prohibitive)
  • Reduced costs related to risk management
  • Pricing stabilization
  • Coverage for specific needs when it may not otherwise be available
  • Access to reinsurance markets.

Is It the Right Move?

The needs and situation of your business will determine whether association captive insurance is worth pursuing. Explore the advantages and drawbacks of this option before making a decision.