Insurance is unavoidable, as you need it in almost all aspects of living. It could be mandated as in the case of auto insurance or it just makes good sense to buy home insurance, or could be a wise business move. Taking insurance is especially now more relevant for businesses as the market is increasingly volatile and there is higher risks involved in starting new projects. The need today is for a comprehensive insurance for every venture that is starting. For this a businessman should approach a captive consulting firm to get an assessment of the possible insurance that he may need. –Captive Consulting–
Previously businessmen used to rely only on their company’s assets to mitigate the risk element of new ventures. But now this is not a good strategy as the market is not as steady as it used to be in the past. Unwise insuring on the other hand is still to blame for the current economic debacle and the collapse of insurance companies and major banks.
However to decide on the need of insurance for a new business venture you have to take into account the risk of its failure and what the insurance is going to cost you. Many companies are turning to captive consulting to get a fair assessment for the need of captive insurance which provides better indemnity compared to regular insurance.
Captive insurance is similar to using for surety, the investment money, except that the failed ventures can be bailed out without the loss of 40% spent on cost of insurance, and the repayment is done in a manner which is tax friendly. Captive consulting will help the mother company to form the required company for captive insurance and will help in aspects like management, administration and solving legal issues.