YOU CAN’T ELIMINATE ALL RISK EXPOSURE, BUT YOU CAN PROTECT YOUR COMPANY AND GAIN POTENTIAL TAX BENEFITS.
Over the years, auto dealers nationwide have implemented captive insurance companies to create a more comprehensive risk management program, gain a financial advantage, and take advantage of potential tax benefits.
A captive insurance company is a privately owned licensed property and casualty insurance company. The purpose of the company is to insure risks of an operating company. For auto dealerships, this may include multiple dealerships, real estate companies that own the land/buildings, management companies, etc.
Although a captive insurance company doesn’t replace all of the insurance coverage currently being purchased from a commercial insurance carrier, it is designed to cover gaps or exclusions that may exist in your commercial coverage.
A few examples of such risks might include:
• Business litigation
• Cyber data breach
• Garage liability
• Collections risk
• Crime/Employee Dishonesty
• Dealer’s Blanket
These “other risks” are determined and priced by a study conducted by an independent actuarial firm. Our firm works with dealers to determine if this solution is good for them, and assists in implementing a privately owned insurance agency for dealer clients.
Captive Insurance Group, LLC
212 W Main Street | Arlington, TX 76010
To hear about the benefits of captive insurance agencies, please send us a message by filling out the form below and we will get back to you shortly.