Chad Duke, Vice President/Threat Advisor, and Pim Jager, Vice President/Advantages Marketing consultant, had been lately featured on the ESOP Podcast discussing captive insurance coverage and Scott Insurance coverage’s collaboration with the Nationwide Heart for Worker Possession (NCEO) to create two new captive applications completely for ESOP corporations, OWN Well being (medical insurance) and OWN Threat (property and casualty).
Scott’s lengthy historical past as an employee-owned firm – and as an trade chief within the improvement and assist of captive insurance coverage applications – has given us distinctive perception into what makes the captive mannequin a super resolution for ESOP corporations. Nearly all of ESOPs are well-managed, collaborative and have better-than-average danger profiles. Moreover, primarily based on the character of the possession construction, many employee-owned corporations fall into the mid-market class and are sometimes too small to self-insure. With these new, revolutionary captive applications developed in partnership with the NCEO, taking part ESOPs will be capable of expertise price financial savings and benefit from the many advantages of self-insuring however with minimized danger and volatility.
The Best Candidate for Captive Insurance coverage
The best ESOP candidate for a captive has:
- 50 to 500 staff and/or greater than $25 million in income
- Good historic claims expertise
- A powerful concentrate on security, danger administration and worker wellness
- Robust company management that values staff and embraces well being and danger administration efforts
Why Ought to an ESOP Be part of the Captive Mannequin?
A few of the advantages of the captive mannequin embody:
- Elevated management and transparency over the insurance coverage course of
- Considerably diminished annual premiums
- Stabilization and discount of insurance coverage prices
- Earned funding revenue and underwriting revenue which is returned to the corporate
- Accountability and shared greatest practices
- Entry to Fortune 500 sources
- Asset safety and entry to decrease reinsurance prices
OWN Well being and OWN Threat even have the additional benefit of giving ESOPs the peace of thoughts that comes with understanding they’re collaborating with likeminded organizations.
Study extra about Scott’s work with these captive applications by listening to the ESOP Podcast and ESOP Mini-cast.
