Posted on May 19, 2014
Delaware is one of those states that is just plain attractive to business owners. A popular hotspot for companies to choose their corporate domicile, the state's draw comes down to being friendly to businesses in taxes, laws and regulations.
This stable business environment also creates an attractive incentive for captive insurance companies. In 2005, the state revised their insurance codes in order to devote their attention to bringing in captive insurers and also to create an entire association dedicated to focusing on this area. In 2010, Delaware made its move to bring in as many captive insurance carriers as possible, and with good reason, they love how easy it is to domicile and do business in Delaware.
A captive insurance company is one that is formed solely for the purpose of insuring related groups or companies, usually by a parent insurance company. They primarily insure business risks that are related. The advantages of forming a captive insurance company are that they can offer lower business insurance costs to companies. They have better cash flow and risk retention than parent insurers. They also have flexibility in offering coverage and risk management services. In fact, captive insurance companies can provide coverage for more commercial lines without restrictions.
Business owners seeking commercial insurance coverage can uniquely position themselves for better coverage with lower premiums than standard insurance carriers. Because they can participate in captive insurance programs, commercial insurance premiums are tax deductible and provide many financial incentives.
Captive companies insure for every type of commercial insurance policy businesses needs including commercial auto, general liability, inland marine, workers compensation, business interruption to name a few. Learn more about Delaware business insurance by contacting our insurance professionals today.