No matter what industry your business operates in, there is always some risk posed to employees. From hurting a muscle while lifting objects in a warehouse to the development of conditions from long-term activities like sitting in front of a computer, there will come times when members of your staff put in for workers’ compensation. In order for you to be able to provide this without draining your capital, you need to make sure you have an insurance arrangement that keeps your protected. One way of doing this is through an agency captive.
What Is a Captive Agency?
There are several key differences between traditional and captive workers’ compensation. For one, captive agencies are not average insurance providers. Instead, these are often private companies that can insure businesses and assume some of the risks associated with operating the company. The shareholders and board members will dictate a number of your business operations in exchange for this additional help with insurance. Benefits of this type of arrangement can include:
- Greater control over claims and settlements
- Tax advantages for the insurer and insured
- Flexibility with the negotiation of premiums
How Captive Insurance Protects Your Staff
Keeping your employees safe is key to running a successful business. When your current insurance falls short of achieving this goal, using a captive agency might provide you with the alternative you need to keep everyone protected.