Captive Services

Your Risk, Your Control - Custom Captive Services

HWP Insurance offers a strategic approach to managing your business risks and controlling insurance costs through captive services. By helping you set up a captive insurance company, we give you direct access to reinsurance markets, bypassing traditional insurance carriers and potentially achieving significant savings.

A captive insurer gives you greater control over claims management, allowing faster resolution and improved cash flow. We tailor our captive services to cover unique or specific risks that traditional insurers may not cover, ensuring your business is protected.


How Do Captive Services Work?

When business owners decide to handle their business risks, they form an internal insurance company, a captive insurer, instead of purchasing insurance from a provider.

Opting for captive insurance is particularly advantageous in situations where traditional insurance falls short. This might be the case when businesses face risks unique to their industry or when specific types of coverage are either prohibitively expensive or simply unavailable in the conventional market.

By turning to captive insurance, companies can create customized solutions to address these gaps, ensuring that they're well-equipped to face even the most industry-specific challenges.

What Are the Benefits of Captives?

Captives offer multiple advantages over other types of insurance or risk management solutions.

  • Reduced Risk Cost
  • Direct Cash Flow Benefits
  • Access to Global Reinsurance Market
  • Unparalleled Flexibility.
  • Enhanced Negotiation Power
  • Centralized Retained Losses.

Is a Captive Right for You?

A captive insurer is a valuable risk management tool, but only if it fits your business structure. If your business wants to set up a captive insurer, you must establish your financial and business goals and objectives. Before you set up a captive, consider these factors.

  • Business goals & objectives: Does the strategic vision of your enterprise align with the advantages a captive can offer? Ascertaining if captive insurance complements your long-term and short-term goals is crucial
  • Actuarial considerations: An in-depth analysis of your company's loss history and potential exposures helps determine the feasibility of a captive structure. This data-driven approach will offer insights into premium calculations and potential savings.
  • Potential of the reinsurance marketplace: A comprehensive understanding of the global reinsurance market, including its dynamics, opportunities, and challenges, will be pivotal in gauging the attractiveness of a captive for your business.
  • Tax and regulatory implications: Navigating the labyrinthine regulations surrounding captive insurance is vital. Ensuring compliance and understanding potential tax incentives or obligations are pivotal components of the decision-making process.

HWP Insurance, with its expertise, aids businesses in evaluating these factors to make informed decisions.

What Types of Risks Do Captive Insurers Cover?

A captive insurer can cover various risks, offering flexibility that often surpasses traditional insurance companies. Typical coverages include general liability, property damage, workers' compensation and professional liability.

The main distinction of captive insurers lies in the control they provide to businesses over claims handling and policy determinations.


Engaging with HWP for Captive Insurance Services

HWP Insurance is a leader in captive insurance services with a reputable history in Virginia, Maryland and Washington, D.C. We prioritize delivering tailored solutions to meet unique business requirements. Reach out to HWP today for expert guidance on the nuances of captive insurance. Collaborate with a leader who genuinely comprehends your business's objectives.

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