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As businesses grow and become major brands that are well-known among the public, the risks faced by the enterprise also increases. Large corporations face many risks in their daily operations - even small errors or faults can result in serious lawsuits against the company. This is why risk management is such a crucial factor, but can also become confusing - especially for owners who do not have knowledge of the sector. Seeking out sophisticated risk management advice can help the business owner have a better understanding of the options.
An 831(b) captive structure is often advised. While the advantages of strategic risk management solutions that utilize a captive structure are easy to find, it should be noted that there are a few negative factors too.
Even though the number of captives registered has increased by over 6,000 since 1980, there are still several companies that do not use the strategy. Sure, certain enterprises can benefit from a captive, but this does not account for every single scenario. We take a closer look at some drawbacks associated with this form of private insurance program management.
Captive insurance companies have both benefits and drawbacks when used as a security protocol for enterprises. Learning more about captive insurance best practices can help, but the business owner should also realize when an alternative solution might be the better option.
Discover If A Captive Insurance Company Is Right for Your Organization? Click here to start the assessment: http://bit.ly/captive-survey