captive Insurance Programs

At Roark & Sutton we agree understanding group captive programs can be intimidating and you want to be an educated insurance buyer.  In order to do that, you need security in your decision making.  The problem is many agents gloss over the fine print which makes you feel uneasy about what your out of pocket costs might accumulate to.  ​

​We believe you deserve honest and transparent communication.  We understand deciphering captive structures can feel inundating which is why we have a special process for you to follow.

captive insurance Programs

These are the some of the most common captives in the marketplace today:

group captives

831(b) Captives

Rental Captives

Single Parent Captives

Group Captives

There are two types of group captives: Homogenous and Heterogenous.

Homogenous:

  • Businesses of the same industry class are grouped together to form a captive insurance company
  • Generally, these types of businesses have high risk exposures either on their worker’s compensation, general liability, or auto liability lines of coverage
  • Examples of industries with homogenous captives are:
    • Roofers
    • Long Haul Trucking Companies
    • Staffing Firms

Heterogenous:

    • Businesses of different industry classes
    • Generally, these types of business have medium to low risk exposures on their worker’s compensation, general liability, and auto liability lines of coverage
    • Some of these captives still have acceptable and unacceptable classes of business which they will consider

    Rental Captives

    • Often a step between a group captive and a single parent captive
    • Differs from the group captives in the way the risks are shared between members of the rental captive
    • Special consideration should be given to the actual calculations of reserves and the use of a tax professional is highly advised

    single parents Captives

    • A single company forms its’ own insurance company
    • The company is the only insured of the insurance company
    • Typically companies looking to start a single parent captive are at or near the largest members of a group captive arrangement

    831(B) CAPTIVES

      • Pertains to the section of the IRS tax code where the IRS limits the amount of premium a captive can receive in a given year
      • Can insure risks which are either expensive, or impossible, to cover in the traditional insurance market
      • Allows for the company to set aside premium dollars each year, even if a claim for the insured risk doesn’t necessarily happen every single year

    Ready to get started?

    For more information on captive insurance programs and to see if one is right for you, fill out the form below. Our team will be in touch with you to discuss what would work best for your company.