Commercial insurance solutions for your business

There is no financial risk associated with being a member of a captive.  Captives are reinsured and fronted by large carriers just like you would find in the traditional market.  Each member pays for that protection.  This is not self-insurance.

There is no downside to joining your own captive.  There is an upfront capitalization fee for the stock and collateral is also a function of the program but, you earn investment income on these items and it is substantial.  Many of our members love this component as it gives them a good place to put their money and watch it work for them. 

Coverage is extremely broad in a captive as all members share the same coverage template.  However, if there is a special coverage your operation needs, we can schedule that into the captive coverage.  Coverage can be custom tailored to fit your needs.

Parrish & Gwinn will assist in the selection of your captive.  There are many components to this decision.  Account size (some captives have large minimum premiums), type of risk (some captives are homogeneous and some take many different types of operations), and the size of the membership (some members do not want to be a part of a large captive).  Plus, we would pick a captive with the same type of exposure your company has.  For example, we would not want to place a clothing store in a captive with roofers.  The reinsurance charges would be far too high for the clothing store as they do not have that level of exposure and therefore would not need to have that type of reinsurance cost associated with their program. 

Dividends begin paying out in the third year after inception of the captive.  For example, if a member joins in January of 2000. They would get the dividend for that year in 2004.  Every year after that, the member would receive a dividend for that year that expired three years before.

There is a 99.7%  retention rate for all Captive members.

Only you and the other members own 100% of the stock in your captive. None of the providers, consultants, or reinsurers have ownership. This is why it works. It is your company, you own the stock and all the assets will come back to you.

Please see question 1 above for the obvious reasons.  However, many prospective captive buyers are not given the chance to be a part of a captive.  Why, because their brokers do not represent them or know anything about them.  The only way to know if this type of program can work for you is to let someone who is a specialist in the captive market look into your options.  If you ask a Ford salesman to find you a Chevrolet, there will be problems on the horizon. 

I have asked that to all of my members and the most common answer is “I wish I would have started my captive sooner than I did, I wasted so much money!”