There are many inaccurate sources that have spread myths about captive health insurance and it is important for business owners to get the facts straight, said Wesley Sierk, president of Risk Management Advisors.
"If you've thought or are thinking about forming your own captive insurance company, there's a high likelihood you've read accurate and inaccurate information regarding captive insurance, its laws and its best practices," Sierk said. "Two of the most common myths about captive health insurance are, 'If I have traditional insurance, I don't need a captive insurance company' and 'Captive insurance is a new thing.' These myths are keeping many small businesses from improving the state of their company and bettering their employees."
Just because a client has traditional health insurance does not mean they don't need to form a captive. As a business owner who is unsure about how to know if captive insurance is right, there is a simple way to figure that out. Start by analyzing one's pre-existing insurance portfolios or insurance policies to see what is included and what is excluded from one's insurance. Everlong Captive is employed with intelligent, highly efficient captive managers to assess one's company's insurance.
"There are certain things traditional insurance companies just don't cover," Sierk said. "With Everlong Captive, you can take those items that are excluded on your traditional insurance policy and add them to your captive health policy. The result is a better coverage with a more well-rounded insurance portfolio."
A common misconception about captive insurance is that it is a new thing. This couldn't be further from the truth, Sierk said.
"We've had captive health insurance in the United States for over 100 years, and they've existed globally for far longer," Sierk said.
Captives have been improving and evolving for many years and have been proven to be a better health insurance solution for hundreds of small businesses.
ISO CG, the Insurance Service Office, is an insurance advisory organization that writes policies for all different companies and is funded by all of the different traditional health insurance companies. This could be the reason why traditional insurance companies are making so much money, and premiums and overall costs are rising and hurting business owners. There is increased probability of bias due to the fact that insurance companies are funding this office to create the insurance policies.