3 Reasons to Consider Captive Solutions for Workers Comp
Insurance captives are member-based Systems that allow companies greater control and personalization in insurance solutions. They are common in specific industries for several reasons. However, many businesses fail to take full advantage of all of the benefits associated with captive companies. Research into captive insurance and workers comp shows that it offers several advantages for businesses. Here are three examples of how a captive can help your company.
1. Tax Advantages
One benefit of using insurance captives is the tax advantages they can offer. Premiums are generally deductible, just as they would be with a separate company. However, with a captive, dividends go back to the members, often at favorable tax rates. This offers the potential to offset some of the costs of maintaining insurance.
2. Competitive Rates
Since captives focus on risk mitigation, they can offer highly competitive rates to member companies. With high workers compensation coverage costs, that can add up to substantial savings.
3. Return to Work Programs
When employees are out of work and receiving worker’s compensation benefits, it affects your bottom line. Return to work programs offer solutions to get workers back to their jobs or into a modified role quickly.
Maintaining the right insurance coverage is crucial to managing risk and limiting liability in a company. Captives offer benefits that other types of insurance companies cannot.