Enterprise Risk Captives Product Sheet

Mar 06, 2018

A captive is an insurance company that insures the risk of an affiliated business or group. Captives have long been used as an alternative to conventional insurance for a business that chooses to self-insure. More recently, captives are used to insure risk not covered by conventional insurance policies, such as deductibles, policy exclusions, coverage that is unavailable or exceedingly expensive in the conventional market, or other risks that are retained by a business. These captives are known as Enterprise Risk Captives (ERC).

Good candidates for an ERC should have at least one of the following:

  • $25 million or more in annual revenue, or
  • Have significant uninsured risk, or 
  • 50 or more employees, or
  • Experience uninsured losses of $100,000 or more annually, or
  • Spend $200,000 or more annually on property and casualty insurance premiums, or
  • Sell warranties or service contracts to customers