Owning a business or running a corporation can be risky. However, for some, the nature of their business may pose higher risks than other companies. For these businesses, finding insurance can be difficult or even seem impossible. Insurance companies may charge very high rates and then their policy doesn’t even cover all the unique needs of that business. Thankfully, there are insurance companies designed with just these needs in mind. If you are experiencing these problems, then a captive solution like the Delaware Series LLC (limited liability captive) may be right for you.
If you are wondering if you need to change your policy, or maybe you’re shopping for insurance for the first time, ask yourself these questions. Have you been dissatisfied with the policies you’ve looked at so far? Do they not offer coverage for everything you need, especially areas of higher risk? Are the rates higher than they should be? Are your deductible too high or you are not offered credit that’s enough to cover your deductibles? If your answer is yes to any of these questions, you may want to consider a captive solution.
The Delaware Series LLC program is designed specifically for businesses associated with high risk. Many consider a plan like this one to be one of the best ways to manage risk. This program means that an independent legal entity can have multiple series business units (SBUs). Each unit runs independently and is therefore not responsible for the other units. This is a huge benefit because it allows debts and obligations to be isolated from the other units who may not have any or not as much debt. Therefore the potential to generate capital is also increased which can help increase a company’s bottom line.
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