Property Captive
A property captive is a specialized form of insurance entity created and wholly owned by one or more non-insurance companies to insure the property risks of its owner(s). It enables businesses to manage their property insurance programs, specifically regarding deductibles and exclusions. By assuming a controlled portion of risk, it provides financial benefits, including potential tax advantages and the opportunity to retain underwriting profit.
Popular Coverages
Deductible Buy-Back
Buy back coverage in a captive refers to the process where the captive insurance entity provides coverage for excluded risks or deductibles in the original insurance policy. This arrangement allows businesses to effectively manage and minimize their exposure to risks that would otherwise remain uninsured, thereby enhancing financial security and resilience.
Property Exclusions
Exclusions buy-back in a captive involves the captive insurance company offering coverage for risks explicitly excluded in the primary insurance policy. It is a strategic approach enabling businesses to cover gaps in their existing insurance, thereby extending protection to otherwise uninsured areas of risk.
Business Income
In a captive insurance setting, the business income waiting period of 72 hours typically signifies the specified timeframe that must elapse before coverage for income losses becomes active following a disruption. Captives offer the advantage of customizing this waiting period to suit the specific needs of businesses, ensuring tailored coverage aligned with their risk profile and operational considerations.