Captive Insurance

Dickinson Wright’s Captive Insurance Practice helps companies take greater control over the cost and structure of their insurance programs. We work with organizations across a wide range of industries that are looking for alternatives to traditional insurance—especially when premiums continue to rise despite limited claims, coverage options are restricted, or strong risk management efforts are not reflected in renewal terms.

We advise clients throughout the full lifecycle of a captive program, including feasibility, formation, and ongoing operation. Our work often involves:

• Evaluating whether a captive is a good fit based on a company’s risk profile, claims history, and business goals
• Designing captive structures that address real business needs and comply with tax and insurance requirements
• Advising on fronting arrangements for regulated lines such as commercial auto, workers’ compensation, and liability coverage
• Assisting with collateral negotiations, actuarial pricing, and premium structure
• Coordinating claims administration, accounting, and investment considerations tied to insurance company operations

Captive arrangements must satisfy established legal standards, including requirements related to insurance risk and economic substance. We help clients build programs that are grounded in real business purpose and supported by clear documentation.

Our process is deliberate and detailed. We review key company materials and speak with leadership and risk management personnel to understand how risk is identified, managed, and financed. This information is compiled into a comprehensive assessment outlining risk exposures, current program strengths, and opportunities for self-funding. From there, we guide clients through formation and implementation, a process that typically takes several months depending on structure and regulatory considerations.