Processor Crop Insurance Captive
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What is a Captive?
A Captive Insurance Company is a formal and efficient method of self-insurance. It finances and insures retained business risks of its shareholder/owners. The AgriCap Group works with a processing entity to create a captive insurance company; the entity is the owner of the captive insurance company and controls all of the insurance programs of the newly formed captive insurance company.
Captive Benefits for Processors
- Customized insurance options to meet the risk management needs of the processing operations
- Provides ‘low-cost’ foundation for ensuring “Sustainable” claims to consumer through competent third-party audit.
- Provides ‘cost-effective’ foundation for ensuring “Scope 3 Accounting” through competent third-party audit.
- Provides ‘low cost’ foundation for “Carbon Credit” creation through competent third-party audit; and creating a fungible financial instrument through ensuring the ‘integrity’ of “Carbon Credits” created.
- Provides a tangible defense against ‘greenwashing’ charges.
How Does a Captive Work?
AgriCap works with you to create a captive insurance company for your processing operation that you own and control. We work together to develop a policy that covers the risks that you desire to cover. The policy is then written, rated, and reinsured through the captive insurance company. You (owner) pay premiums to the captive insurance company in exchange for the captive insurance company assuming the risks identified in the policy. If you suffer a loss, the captive insurance company pays the claim to the owner per the terms of the policy. If you do not suffer a loss, the captive insurance company keeps the excess of the premiums which, when earned, is added to the captive insurance company’s capital each year there is no loss. The captive insurance company also earns income by investing premiums that it receives until it uses those funds to pay any claims.
Can my Processing Operation Benefit from a Captive?
Historically, captives have been used by large corporations. Today, captive programs are available for individual crop processors and local agribusinesses. Processors can profit from owning their own insurance company using proven, secure captive structures and programs. This risk management solution is growing fast within the Agricultural Industry.
A captive can be used to insure a number of risks that processors face. Our solution is designed specifically for processors to assist in managing input production risk, such as adverse weather, disease, insect and poor quality.
Acerage
Farms and Farm organizations with over 10,000 acres
Crops
Farms with High Valued Crops
(Nuts, Fruits, Citrus, Vegetables)
Revenue
Annual gross revenues in excess of $6,000,000
High Premiums
Farms spending over $200,000 annually on insurance premiums
Next Steps
Our Process
Our process typically takes from 60 to 90 days depending on the data available and response time of all involved parties.
Step One
Entity Education & Execute Non-Disclosure Agreement (NDA)
Step Two
Data Gathering / Risk Management Program Development
Step Three
Proforma Development
Step Four
Captive Application and Approval
Step Five
Reinsurance Procurement
Get a free Consultation
5900 Rowland Rd, Minnetonka, MN 55343
+1 (952) 746-4353
info@agricapgroup.com