Members of a professional association often face common risks that are unique to their trade or industry. An association captive insurance company may offer these members a cost-effective vehicle for insuring against their specific potential losses and liabilities.
A captive has the flexibility to tailor underwriting decisions to meet its members’ needs. This customization can provide the insureds with coverage and limits that may be difficult or expensive to procure in the conventional insurance market. The captive also establishes and manages uniform procedures for processing claims and can adopt appropriate loss control measures to reduce claims.