The primary advantage of our commercial insurance is the ability to issue proof of insurance, such as a cover note or an insurance policy, to fulfil contractual obligations. This is distinct from regulatory compliance and focuses on accessing coverage that may not be readily available in the traditional insurance market while ensuring compliance with relevant regulations.

Clients have the option to retain specific risks that they are contractually obligated to insure, like workers’ compensation or medical malpractice exposures. By insuring these risks through Capfin, we provide evidence of insurance and capture premiums that might otherwise be paid to third parties.

In cases where a business seeks coverage but cannot reach the budgeted level, Capfin offers a solution to access tailored coverage aligned with the organization’s insurance program and budget constraints. This flexibility ensures that businesses can secure the necessary protection.

Our commercial products can help businesses retain profitable premiums that would otherwise go to third-party insurers by retaining risk through Capfin.

However, for external stakeholders, retaining these risks on the balance sheet may not be acceptable, necessitating additional third-party insurance coverage to meet obligations.

Compliance is one of the benefits that intersect financial, strategic, and operational aspects of an insurance policy. Capfin allows companies to pool retained risk across different regulatory and tax jurisdictions, ensuring transparent and well-understood accounting, tax, and legal treatments.

Organizations often need to demonstrate evidence of insurance in various industries. As a formally regulated insurance company, Capfin can produce policies that meet these standards. It can also facilitate compliance for unique situations, such as when coverage appears to be insurance but is not issued through a regulated vehicle.

In cases where Capfin cannot produce a policy that meets regulatory requirements, we can achieve compliance through ‘fronting,’ involving a licensed insurance carrier issuing a policy and reinsuring the risk to Capfin. This ensures that the insured receives rated paper from a licensed carrier while Capfin retains most of the risk.

Control is a vital aspect of insurance that Capfin offers. As your primary insurer, we can customize policy language, manage claims, and obtain reinsurance to provide broad coverage at competitive prices transparently.

By partnering with Capfin, organizations gain control over premium dollars and the ability to assume higher retentions, enhancing their risk management capabilities.

Capfin enables organizations to design custom insurance policy forms for traditional or non-traditional risks such as cyber or supply chain. This control allows businesses to provide coverage for perils not covered by third-party insurers or tailor policy terms to their needs.
Additionally, Capfin’s policy terms can differ from overlying insurers or reinsurers, offering flexibility in coverage customization.

Companies often grapple with the decision of how much risk to retain versus transfer. Formally remitting premium into Capfin ensures funds are dedicated to covering potential losses, providing a disciplined approach to funding future losses.

This approach is particularly suitable for risks like product liability, product recall, property, environmental, cyber, and terrorism.

Capfin can be used to insure unrelated risks, similar to a traditional insurer. This allows us to participate in third-party insurances, such as extended warranty insurance programs or owner-controlled insurance programs (OCIP) for subcontractors.

If the captive performs well, the parent company can retain profits generated from premiums. However, underwriting would be necessary to ensure profitability in this scenario.

We also facilitate risk consolidation for non-employed contractors or suppliers through master insurance programs, further enhancing risk distribution and supporting tax deductibility of premiums.