Speaker 1
Yes, so there's a Sometimes a lengthy process that we go to right so we will take all of their data usually it's Copies current copies of their policies and their loss runs and some of their you know Maybe their safety protocols and we can really dig into it and look at what they're paying to the commercial market versus You know what we might be able to do in a captive. So There's a process where you say hey should I should I take on more risk or Should I pass that risk off to the commercial market and folks don't often realize sometimes it's cheaper to pass most of that risk on Through risk transfer to the commercial market. So for example if your let's just say you're paying $200,000 for a GL policy in the commercial market right a million dollars of coverage It might be better for you to take larger deductibles and see how much premium you save and then self-insure that Versus you know if I'm gonna take that whole million dollars into my captive If I charge myself 200,000 now I have to have the capital or other premiums in that captive to pay that full loss
Speaker 2
And that's something that obviously elite risk sits down talks to their clients and Breaks it down shows them all the different options so that the businesses can make the best decision for themselves
Speaker 1
Sure, so so when I get folks that have the Call us or reach out to us that are looking for cheaper insurance, you know, we talked through what that really means so cheaper insurance sometimes we get calls people are just looking for lower premiums, right? So that's not necessarily the only way to have cheaper insurance We focus on a lower total cost of risk So at the end of the day you may be spending a million dollars entirely on your commercial program But what we do is try to show you how you can keep more of that premium and underwriting profit So are you are you getting cheaper insurance by definition? Yes at the end of the day if your total cost of risk is cheaper or lower Are you getting cheaper premiums? Not necessarily because you're still gonna have that same initial cash outlay And it's not like hey if I'm taking that risk I don't have to pay that premium you still have to pay it to yourself The upside is you're not kissing that money goodbye every year
Speaker 2
What are you know, we talked a little bit about the misconceptions with with captives but What is it about captives that?
