Obtaining commercial coverage in the traditional marketplace is universally frustrating for business owners. Unless losses occur, and claims are made – something stakeholders work hard to avoid – commercial insurance is a sunk cost. Further, businesses with effective risk management processes in place often pay exactly the same expensive premiums as those with poor risk management controls. This often means that the premiums of the many, subsidize the losses of the few irresponsibly or poorly run businesses. This is a great proposition for insurance companies: an estimated 40% of commercial premium dollars go to insurer expenses and profits. A private insurance structure, on the other hand, gives businesses the opportunity to capture unused premium as proﬁt and have more say in the claims process. For many business owners, the idea that you can share in both the risk and reward involved in insurance is a true paradigm shift.
Captive Alternatives is excited to have partnered with a major commercial insurer to provide a comprehensive yet simple way for small and medium-sized enterprises to reinsure up to 18 different lines of commercial P&C insurance into a Private Insurance structure. This program allows business owners to retain up to 50% of their premium as underwriting profit.
|Commercial property||Commercial general liability|
|Business interruption||Professional liability|
|Transit/annual transportation floater||Errors and omissions liability|
|Builders’ risk||Directors and officers liability|
|Commercial crime and fidelity||Employment practices liability|
|Boiler and machinery breakdown||Cyber liability|
|Commercial inland marine||Environmental impairment liability|
|Marine cargo||Marine liability|