A Captive is an insurance company and is an alternative to traditional insurance solutions. Additionally, a captive is a risk management tool that assists companies to manage unique risks. This risk management tool enables companies to enhance protection and customize coverages. Captives can be in the form of a single parent captive or a group captive. Due to unique risks and circumstances, a captive can be a very effective risk management and cost-saving tool. Both are effective in specific circumstances. However, a captive may not be the right solution. There are benefits and disadvantages with captives, and advisors from Birch and Associates, LLC will guide the captive discussion and process.
