Rather Than Buying Insurance: Own it

Running the human resources end of a business is a challenging job. When it comes down to the insurance the company carries for individuals, there can be some complications with the insurance company itself. Claims could be denied and all sorts of problems can arise. This will displease all employees and the lead staff too. Nobody needs to be stuck with a mess like this on their hands. Worse still, your company has to carry a large sum of worker’s compensation insurance and this is very costly as well.

If you are on the human resources end, you already know the numbers and you are the one who receives the complaints about anything the company is dealing with. Insurance problems are going to be major complaints, as it relates to the livelihood of your employees. Even you are dealing with the same thing. Rather than deal with all of this, you should investigate captive insurance companies as an alternative. This type of insurance configuration puts your company to the level of actually becoming an insurance company for its own workers.

captive insurance companies

This can be done with any kind of insurance. In fact, since your company is running the insurance company as well, premiums can be kept very low and claims can always favor all of the hard-working employees at the company. The result is a happier staff and more efficient work with full insurance coverage. This is something that helps you keep employees rather than losing them often due to poor insurance.

Another benefit of becoming your own insurance company is the gains. Much as insurance companies make large profits, your company will be able to do the same. A good portion of this can be shared with employees while another portion could go to anything you want within the business. An example would be offering business shares to workers.