Individual enterprises have available to them many smart alternatives and add-ons to commercial insurance.
Individual companies and organizations can enjoy some pretty sweet benefits by insuring themselves — in whole or in part — rather than simply buying insurance from a commercial carrier. The benefits include cost savings, greater control over claims, improved cash flow, customized coverages, and a sharp decrease in bureaucratic headaches.
A smart self-insurance program can also:
- Increase the resources you have available for health, safety, and loss control initiatives
- Protect your business from the volatility of the insurance market
- Allow you to generate investment income, instead of ceding that benefit to a commercial insurance carrier
- Give you direct access to the reinsurance market that commercial insurers use to protect against catastrophic risk
We can lead you step by step through the process of designing, establishing, and managing your own self-insurance program. We’ll start with a feasibility study, to determine whether self-insurance makes sense for you. If it does, we’ll figure out the most desirable contours for your program. This is essential, as there are many types of self-insurance, suited to different companies and different risks. We’ve been doing this a long time, and we know our way around all of them.
We think you’ll agree — much of the beauty of self-insurance is that we can design it precisely to meet your needs. Bless their hearts, but commercial insurance companies just aren’t set up to offer that kind of customization.
To dig deeper into the possibilities of self-insurance, call John Ashton at 602.222.2101, or send him an email at firstname.lastname@example.org.
establishing an offshore captive
One of our hospital clients was paying its broker on a commission basis for life insurance and supplemental benefits. Service was poor, though, and costs were too high. Ashton Tiffany introduced a smart alternative. We helped our client establish a branch employee benefits captive in the U.S. Virgin Islands. By changing to a branch captive, our client saved $500,000 in the first year and enjoyed enhanced supplemental benefits and improved service quality.
Insuring construction projects with an OCIP
In 2002, we helped a multistate hospital system create an owner controlled insurance program (OCIP). The program provided workers’ compensation and general liability coverage for construction projects with a combined value of $1.2 billion.
The OCIP saved our client an estimated $2 million on the purchase of commercial insurance. It also helped the client achieve: (1) fewer uninsured events; (2) greater control over site safety and claims; and (3) opportunities for savings on claims management.