Captive and Self-Insurance

An alternative to traditional insurance solutions

With traditional insurance contracts, you simply pay a premium and then claim from the insurance company should a loss occur. It’s an agile enough approach for individuals and smaller enterprises, but what if you’re already spending in excess of £200,000 on conventional insurance premiums? When you’re mitigating a very broad range of operational business risks with a significant price tag, year in, year out, there’s every chance you could benefit from a self-insured or captive approach, that enables you to pre-fund against any future losses.

Simply put, self-insurance is a way of setting aside a fund either within your own business, or through a subsidiary or an associated company, in order to pay for the costs to your business should a loss occur. A captive goes one step further by setting up your own insurance company, where the premiums paid are tax-deductible. If your claims are lower than anticipated, your captive could accrue tax-free profits that you can distribute tax advantageously or underwrite additional risks.

We are specialists in captive and self-insurance and have built many such programmes for our clients over many years. Our self-insurance professionals have the understanding and experience to audit your risk exposures and advise whether or not such an approach is right for you. All we need is a minimum of three months lead-in time ahead of your conventional business insurance renewal deadline, to scope out the project - and if you’d like to proceed, deliver it, in discussion with you, every step of the way. 

It’s a potent and efficient way of managing your risk – so if you’re already investing heavily in your annual business insurance premiums, contact us to explore your self-insurance options.

If you’d like to discuss how we can help add value, agility, performance and protection to your business insurance portfolio, then call 0800 612 6223 or email ib-enquiries@theovalgroup.com.