A short excerpt from a Hunter Nelson YouTube video discussing when forming a captive insurance arrangement makes sense. The speaker contrasts businesses that are easy to insure (experienced drivers, local general freight/grain hauling) and relatively low premiums (example: $4,000 per truck) versus tougher-to-insure classes, and frames the decision around financial sense and timing for entering a captive.
If you're something super easy to insure. Like, all my drivers got years and years of experience, and I'm hauling general freight or grain, and it's all local, and I'm paying $4,000 a truck. Yeah. It still would make sense get into a captive, but you're probably going to want to make sure that it makes a lot more sense in your financials, and you're probably not going to get in there as soon as what a really tough to insure class code would be, because you're going to be paying a lot more per truck per anything in that situation. Right. If you're, if you're tougher to insure because of the business that you, that you run. So what? You know, I mean, when, when does it really make sense to go into a captive.
