Sponsored Segregated Cell Captives

Captives are an alternate risk management strategy that can provide a company with many advantages over traditional insurance coverage. Many types of captives exist, and each structure has its own advantages and disadvantages. One of the more complex captive structures in existence is the sponsored or segregated cell captive.

What is a Segregated Cell Captive?

A segregated cell captive is a special type of captive that separates itself into multiple internal segments, or “cells.” Each cell is protected from any claims made by another cell’s creditors. Segregated cell captives are most commonly used in rent-a-captive arrangements, but they may also be used by the same company in order to segregate subsidiaries or lines of risk.

Benefits of Segregated Cell Captives

The main benefit of a segregated cell captive is the protection each cell within the captive receives from external creditors. This benefit is unique to segregated cell captives and does not apply to other types of captive arrangements. However, if you utilize this arrangement, you will also enjoy all of the other general benefits of captives, including:

  • More control over your coverage.
  • Opportunities to earn interest on investments.
  • Tax benefits.
  • Protection from the volatility of the external market.

Contact the Warren G. Bender Co.

Segregated cell captives can be complex, especially for beginners. Fortunately, the experts at the Warren G. Bender Co. understand all of the rules and regulations surrounding segregated cell captives. We can review your current coverage structure, provide you with advice and help you determine whether a segregated cell captive is the right insurance strategy for you. We can also help you implement this strategy so that you reap the maximum possible benefit at all times. Call the Warren G. Bender Co. today to discuss your unique needs and learn more about our services.