Venture Captive Management, LLC (VCM), was created in 2002 to meet the demands of the North Carolina Association of Long Term Care Facilities in creating a stable insurance facility that members could depend on to continuously provide general and professional liability insurance. While creating the National Assisted Living Risk Retention Group, Inc., the founding members of VCM discovered that there was a strong need in the “middle market” business segment for alternative risk funding structures: risk retention groups, single parent captives, group captives, and “micro” captives meeting 831-b regulations. These structures are the most formalized structures for providing self-insurance—not just for general and professional liability but a myriad of exposures.
Founding members went about creating a company dedicated to: providing alternative risk transfer structures; researching and becoming licensed in the appropriate venues for domicile; finding a group of solid skill-set employees who could competently provide accounting, claims, underwriting and financial services; and establishing relationships with business partners committed to middle market relationships.
Why We’re Different
The result is a boutique captive insurance management firm dedicated to solving risk funding solutions to address clients’ unique situations. These are client-centered solutions NOT Company-centered, “cookie-cutter” solutions. Each client is reviewed in-depth to determine the best strategy for managing their risk by taking into consideration their financial stability, liquidity, long term objectives, and appetite for risk.
No two clients are alike and no two risk retention groups/captives are alike. Each has its own objectives and considerations which affect where the structure is domiciled, who is the beneficial owner, what lines of business are covered, and how profits are distributed.
Profits are important. VCM seeks to manage all risk retention groups and captives with three guiding principles: to provide asset protection for the beneficial owner, to control the process, and to provide profit to the beneficial owners. The captive is first and foremost designed to capture the underwriting profit that would normally stay with the standard commercial carrier under traditional insurance coverage. Asset protection is essential for business owners to continue to build their businesses. Only by taking charge of the process can they be assured that their assets are being put to use for their own purposes and not for the use of a disinterested third party insurance company.
The captive is not primarily an off-shore scam designed to hide corporate funds. It is a solid business transaction designed to reward its owner for competently managing its operations and exercising solid risk management principles. VCM employees are dedicated to meeting compliance issues surrounding the use of its clients’ self-insurance vehicles.
The VCM team thinks of itself as an extension of each of its business owners. VCM doesn’t create a risk transfer structure and leave it to the imagination of the business owners to operate. VCM provides a “turnkey” approach in providing alternative risk funding structures. The business owner must decide if he/she is operating a business that successfully controls its claims. If the answer is, “Yes!” then contracting with VCM is the next step to enhancing the business’s profitability.