What is a Captive Insurance Company?
A captive insurance company is a smart way for businesses to manage specific risks that might be too expensive or hard to cover with traditional insurance.
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Instead of paying premiums to commercial insurance companies, businesses create their own insurance company—a captive—and pay premiums to it.
This structure allows businesses to:
Customize Coverage
Tailor insurance policies to their unique needs.
Save Money
Any unused premium stays in the captive as reserves, which can grow into profits.
Invest in Themselves
The captive can invest reserves for future claims or business growth.
How it Works & Benefits
How it Works
- A business sets up a captive as a wholly owned subsidiary.
- The captive operates like an insurance company, setting premiums and writing policies for specific risks.
- Premiums paid by the business are tax-deductible.
- The captive invests the premiums for future claims or profit.
Benefits of a Captive
- Risk Control: Businesses have more say in managing their risks.
- Cost Efficiency: Policies are based on your loss profile, not market averages.
- Financial Growth: Build equity while securing tailored coverage.
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More About Captives
Captives are typically set up as C-Corporations in jurisdictions that allow them to operate as licensed insurers. When structured correctly, they can provide a cost-effective way to manage risk and build financial resilience.
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About Panatela Insurance Group
Here at Panatela Insurance Group, we are committed to helping educate you on your insurance needs so you can make an informed decision when selecting a policy. And as an independent insurance agency, we understand that your insurance needs are unique, which is why your insurance coverage should be too.
Get started with a quote today so you can be one step closer to protecting what’s important to you.
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607 Cheek-Sparger Rd #100, Colleyville, TX 76034 | 817-753-0093
