A business or corporation who carries higher risks than most companies may find it difficult to find adequate insurance. The policies from traditional insurance providers may not cover all the needs of the company and then will still charge outrageous rates to provide that inadequate coverage – all because the nature of the company’s business has higher risks than other companies. There are other options on the market today. These include captive plans like a Delaware Series LLC (limited liability captive). However, you may be unsure if this if this is really the direction your company should go.
First, take a moment to think about your experiences with your current insurance company. Have your rates continued to go up, in all parts of your policy? Have you had problems even getting coverage, especially for certain kinds of risk? Does your credit rating reflect the market trends instead of your own individual loss experience? Are your deductibles too high? If you answered yes to any of these questions then it’s definitely worth looking into a captive insurance policy.
The Delaware Series LLC program offers many benefits to policy holders. This type of plan means that an independent legal entity can have more than one series business units (SBUs). Each SBU operates separately, has limited liability and, therefore, debt and responsibility can be compartmentalized. So each SBU can use their funds more efficiently. This also helps each one maximize their potential to generate capital which is key in managing a successful business or corporation.