Insuring your company wisely and robustly is a matter of walking a few fine lines, because over-insuring can lead to a loss of resources in other areas due to bloated costs, but under-insuring can threaten your whole operation if the wrong disaster strikes on the wrong day. This gets even more complicated if your company is hard to insure due to risk levels or unconventional coverage needs, because many insurers offering general liability and other basic business insurance packages do not have industry-specific experience that lets them carve out a specific enough policy to make sure every part of it is useful to you and nothing is overlooked. They just don’t have the resources to do that for every company. That leaves two options, finding a specialized carrier or creating your own insurance provider.
There are industry-specific insurance options if you go looking for them. While you might find some of your needs are unconventional enough to be off their regular menu, these providers do bring a level of specific knowledge to insurance quotes and policy-building you cant find in a more general business insurer. This makes them better at customizing things when you do need to go off-script, but like more mainstream multi-service providers, going off-menu can still cost a pretty penny. They are generally more cost-effective than trying to buy a robust enough general policy to suit a business that needs more than general liability.
Buying into a partnership with other businesses that creates a captive insurance group to serve you all can help you control your costs more completely, because your insurer exists solely to service your company and the others that join you to form the captive. By owning the insurer, you know any profits generated flow back to the covered companies, and that means you recover overpayment with your partners. It also means you share the risks and costs of setting the company and its cash reserves up, so it’s a lot easier to finance.
To learn more, you’ll need to talk to a company that helps set up captives. They can probably even match-make your captive group.