Single Parent Captive Insurance

For Healthcare and Senior Living Facilities

What is a Single Parent Captive?

Single Parent Captive Insurance, also known as a pure captive, refers to an arrangement where a single organization forms its own insurance company, or a ‘captive’, to finance its risks. This setup allows the parent organization to have complete control over its insurance program, including what risks to cover, how to manage claims, and how to invest its funds.

What Specific Insurance are Single Parent Captives set up to Cover?

Single Parent Captive Insurance can be tailored to cover a broad range of risks according to the specific needs and risk profile of the parent organization. For healthcare and senior living facilities, single parent captives could cover professional liability, general liability, property damage, workers’ compensation, and even specific risks not typically covered by traditional insurance providers.

What Kind of Organizations are Single Parent Captives Suited to?

These structures are well-suited to organizations with a substantial cost of insurance and a willingness to take on the responsibility of managing their own insurance. It’s particularly beneficial for  senior living facilities like assisted living facilities, independent living facilities and hospicesHealthcare facilities, particularly hospitals, which face diverse and significant risks and can benefit from the flexibility and potential cost savings a single parent captive can provide.

It’s usually recommended that organizations familiar with the captive environment start a Pure Captive, while those new to this type of self-insurance may prefer to start with a Protected Cell or Segregated Cell Captive 

What are the Advantages of Single Parent Captive Insurance?

Cost Savings

By self-insuring, organizations can potentially achieve substantial savings on insurance costs. Additionally, since the captive is owned by the parent organization, any underwriting profits or investment income can be retained within the organization.

Enhanced Risk Management

With a pure captive, organizations take on an active role in managing their own risks, leading to heightened risk awareness and improved risk management practices. The conversation around risk management becomes more focused on the savings potential rather than just the costs.

Improved Safety Outcomes

A greater focus on risk management can lead to improved safety outcomes. For healthcare and senior living facilities, this means creating safer environments for patients and residents, which can result in fewer claims.

Greater Control and Flexibility

Single Parent Captive Insurance provides organizations with complete control and flexibility over their insurance programs. Coverage can be tailored to meet unique needs, and changes can be implemented quickly to adapt to evolving risk landscapes.

Continuity in Programs & Premiums

Traditional Insurance providers will adjust premium costs and even stop offering coverage when they wish to reduce their exposure in a particular venue. By self insuring, organizations can avoid this constantly changing landscape.

How Much Does a Single Parent Captive Cost to Set Up?

The cost of setting up this type of captive can be considerable, often requiring significant initial capital, legal and consulting fees, and regulatory filing fees. These costs, however, can be offset over time through reduced insurance premiums and improved risk management.

How Do We Get Started?

Setting up a single parent captive involves multiple steps, including conducting a feasibility study, creating a business plan, capitalizing the captive, and navigating through the regulatory process. It’s crucial to work with an experienced professional in the field.

Michael Richards of Westwood Insurance Group has extensive experience in setting up single parent captive insurance companies for clients. His expertise can guide you through the process and ensure the successful operation of the captive once it’s established.

Single Parent Captive insurance is suitable for organizations experienced in the captive environment

Contact Michael Richards now

Michael Richards, President, Westwood Insurance Group

Michael specializes in insurance for this particular group. You can call him on the number below or fill out the form and he will get your message directly:

insurance for hospitals

Hospital Insurance typically covers all or part of the potential liability for hospital services. It includes medical malpractice, accidents involving hospital employees and equipment, care during surgery or any other invasive treatment, after-hours care arrangements by staff who need help with their children and more.

insurance for long term care facilities

Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.

traditional insurance products

Westwood have fostered exceptional relationships with underwriters and we go to great lengths to keep abreast of their latest products, changes in requirements and restrictions, including having weekly calls with the carriers, which you can see here, by joining our insurance insider group.

    Insurance products at Westwood Insurance Group

    You can find more information on the Insurance Products main page.

    If you have any questions on the different policies, check out our Insurance FAQ’s

    alternative structures

    Westwood President, Michael Richards has extensive experience in setting up alternative structures for larger clients. Here are some examples:

     

    If you think your client could be large and stable enough to benefit from starting or participating in a captive or has a special need for another alternative structure, contact Michael Richards now by phone: 855 351 7487.