To Be In Captivity Means That You Are Actually Free
For the purpose of bringing across the point, that is just a rudimentary way of putting it. Obviously, you would have guessed that being in captivity is, strictly speaking, not altogether a good thing. And is it not great to know that you are still free to make your own financial decisions. This could be the case if you are still green behind the ears in terms of a business development. There is scope for financial improvement and financial freedom while you are still learning.
Consider yourself to be among the lucky ones. While established businesses have no alternative but to continue relying on conventional but expensive commercial insurance products, you have an opportunity to go captive. Liken this advantageous opportunity to receiving sound financial advice from a qualified financial planner. Because the concept is still a relatively foreign subject for many business practitioners, there may be complexities to get through.
However, you will be negotiating these well enough through a qualified handler. Talk to him soonest and he can walk you through a feasibility study that concludes whether your business and financial situation is ideal to buy into the concept of captive insurance. Captive insurance industry practices continue to go from strength to strength while conventional commercial underwriters continue to be marred by increasing challenges.
Complex the product may be in its developmental stage but it is easy enough to explain in this short article. The principle is this. Instead of buying insurance at premium rates that may be too costly for your business, you are developing the capital space to self-fund your own insurance requirements. You will have your own kitty from which to pay for loss or damage if and when it occurs.