Captive insurance represents a new level of control for companies looking for innovative ways to manage their risks. Forming a captive insurance company allows businesses like yours to insure difficult risks, reduce costs, improve cash flow and access the reinsurance market. This flexibility helps boost your operations with a tailored, structured approach to protecting your business from typical exposures, including various liabilities, workers’ compensation, auto coverage and more. Creating a captive insurance company offers benefits, but the expense of doing so presents a significant entry barrier.
What is a Protected Cell Captive?
A protected cell captive or PCC stands as an alternative to self-insurance or incorporating a separate captive company altogether. It offers many of the same benefits as captives such as improved control, policy issuance and reinsurance market access without the initial and long-term operational costs. The following business types should consider PCCs:
- Businesses that are too small to create their own captives
- Groups uninterested in establishing a captive
- Entities issued in joint ventures and other partnering opportunities
- Companies interested in access to specialized reinsurance markets
What Type of Protection Can I Expect?
PCCs can provide coverage for typical protections as well as niche protections that may be unusual or hard to insure with standard products. It’s important to partner with a cell insurance company that can help you explore the advantages of a PCC. Such providers can also help you develop solutions you can truly use.