Single Parent Captive Insurance

For Healthcare and Senior Living Facilities

What is a Single Parent Captive?

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

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

Single Parent Captive Insurance can be tailored to cover most risks according to the specific needs and risk profile of the parent organization. Healthcare and senior living facilities can set up single parent captives to cover professional liabilitygeneral liability, property damage, workers’ compensation and much more. They can even be set up to cover specific risks that are not typically covered by traditional insurance providers.

What Kind of Organizations are Single Parent Captives Suited to?

Single parent captives are best-suited to organizations that pay a substantial amount for insurance each year. They must also be willing to take on the responsibility of managing their own insurance. Single parent captives are suitable for senior living facilities like assisted living facilitiesindependent living facilities and hospices. Insurance coverage is a major expense for these organizations and they can earn interest by investing this money through a captive.

Healthcare facilities, particularly hospitals face diverse and significant risks, so can benefit from the flexibility and potential cost savings a single parent captive can provide.

It’s recommended that only organizations familiar with the captive environment start a Pure Captive. Those new to this type of self-insurance may prefer to start with a Protected Cell or Segregated Cell Captive. That way, they can ease in to the captive environment through a managed structure, before taking on that responsibility themselves.

 

What are the Advantages of Single Parent Captive Insurance?

  1. Cost Savings
    By self-insuring, organizations can potentially achieve substantial savings on insurance costs. As the captive is owned by the organization, they can also retain any underwriting profits or investment income.

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

  3. Improved Safety Outcomes
    A greater focus on risk management usually leads to improved safety outcomes. For healthcare and senior living facilities, this means safer environments for patients and residents, which results in fewer claims.

  4. 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. This allows the organization to adapt to evolving risk landscapes.

  5. Continuity in Programs & Premiums
    Insurance companies will raise premium costs and even decline coverage when they wish to reduce their exposure in a particular venue or market. By self insuring, organizations can give themselves a buffer against this constantly changing landscape.

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

The cost of setting up a single parent captive can be considerable, as it requires significant initial capital. Other setup costs include legal fees, consulting fees and regulatory filing fees. These costs can be offset over time however, through reduced insurance premiums and improved risk management.

How Do We Get Started?

Setting up a single parent captive involves multiple steps, starting with conducting a feasibility study. Other steps are creating a business plan, capitalizing the captive and navigating the regulatory process. Working with an experienced professional is essential when setting up this type of organization.

Michael Richards of Westwood Insurance Group has extensive experience in setting up single parent captive insurance companies for clients. He can can guide you through the process of establishing the captive and ensuring its successful operation.

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:

traditional insurance products

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    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.