Protected Cell Captive Insurance

What Insurance do Protected Cell Captives cover?

Protected Cell Captive Insurance can be established to cover a wide range of risks. This of course, depends on the unique requirements of your organization.

In the instance of healthcare and senior living facilities, protected cell captives can be set up to cover professional liability, general liability, large deductible obligations, workers’ compensation, and even other  specific risks that conventional insurers may not cover.

This flexibility in defining the coverage that best suits your organization is one of the benefits of  a protected cell captive.

What Kind of Organizations are Protected Cell Captives Suited to?

Protected Cell Captive Insurance is beneficial for and healthcare or senior living organizations who wishes to move to alternative structured insurance, but don’t want to shoulder the set-up costs and wait up to a year for it to be finalized.

They are particularly advantageous for organizations who are large enough to self-insure, but are new to the captive environment. Instead of going to the trouble of setting an entity up, you can join a captive which is already up-and-running by just paying an entry fee.

Because they have a ‘protective cell,’ structure, you are not exposed to the liabilities of other members in the way that you would be in a group captive arrangement.

By joining a Protected Cell Captive, an organization can get access to accounting and reporting functions and a captive manager who is responsible for engaging with the state regulators. This is why segregated cell captives are often used as a stepping stone to a stand-alone, single parent captive.

What are the Benefits of Protected Cell Captives?

• Cost Efficiency

  • A protected cell captive can provide substantial cost savings. By sharing operational costs among the cells, it can be cheaper to operate than traditional captives. Any unused premiums and investment income can be returned to the cell owners.
  • For an organization that is new to the Captive environment, Protected Cell Captives offer a faster way to move to a captive without the startup costs of a Single Parent Captive.

• Enhanced Risk Management

  • Protected cell captive insurance encourages organizations to actively manage their risks. This increased involvement by management often results in improved risk management practices.
  • Their focus usually moves from “How much do risk management programs cost?” to “what savings can we generate from risk management programs?” This fosters a culture of proactive risk management.

• Improved Safety Outcomes

  • By focusing organizations on risk management priority, protected cell captives can contribute to better safety outcomes.
  • When Healthcare and senior living facilities implement risk mitigation measures that significantly reduce risks, the patients and residents they serve benefit.
  • Fewer risks can lead to fewer claims, improving the safety profile of the facility.

• Greater Control, Flexibility and Security

  • Protected Cell Captive Insurance give organizations more control and flexibility over their insurance programs.
  • Coverage can be customized to meet specific needs, and changes can be made quickly to adapt to shifting risk landscapes.
  • The asset segregation provided by the cell structure offers enhanced security.