Captive Insurance Structures: Protected Cell Captives

Traditional insurance — life, health or property — for your business is costly and can cause a significant drain on your resources. Costs continue to rise, causing complaints both from your employees and your leadership team. While this may be the way you’ve always done business, the good news is that you don’t have to continue down this path. A new model for insurance is rising to prominence and companies across the country are seeing how they can save money by moving to a protected cell captive.

What is a Protective Cell Captive?

A protective cell captive insurance company is one of the best ways for an organization to appropriately manage risk. You can often recapture the costs that are currently going to a third-party insurance provider by creating a co-owned insurance company with a non-traditional insurance agency. This legally-licensed company can be formed by any type of business from automotive dealerships to construction companies. As a limited-purpose organization focused on providing property and casualty insurance, these captives exist to protect the owners and affiliated organizations with risk reduction. A protective cell captive, in particular, allows a business to utilize a captive that is managed by a full-service insurance organization.

Benefits of a Protective Cell Captive Model

In a protective cell captive model, not only are you reducing the overall risk to your organization through a fully-funded insurance model but you’re also greatly reducing your cost of insurance. Insurance premium payments are lower due to the reduced overhead of your captive versus a traditional insurance company. You are gaining the expertise of a management organization, with additional economies of scale. Another key benefit of the captive model is that your leadership is likely to become more focused on creating a safe workplace which not only drops the cost of insurance but also creates a more positive work environment. Under a traditional insurance model, the underwriting profit often stays within the commercial carrier — but a protective cell captive model brings that profit home to the sister company.

Venture Captive Management is Your Ideal Partner

When you work with Venture Capital Management, you can be assured that we will leverage our decades of experience to support your organization’s private insurance needs. We are dedicated to creating unique solutions to support our clients’ needs by managing risk with an eye towards liquidity, stability, and appetite for risk. Our employees are dedicated to providing a secure risk-balanced model that meets or exceeds all compliance requirements. This turnkey approach allows organizations to focus on their core competencies while trusting the insurance professionals to manage risk and compliance needs.

When you are ready to turn your insurance from a burdensome cost into a profit-saving machine, contact the professional insurance team at Venture Captive Management. We have worked with businesses of all sizes in all business verticals to create a protective cell captive to protect their financial investment. Contact us today at 770-246-8535 or fill out our easy online form to receive a callback.