Most people will say that insurance works. It makes good business sense to have a comprehensive insurance policy to cover your entire business so that in those cases when loss or damage occurs, you will at least be able to claim back some or most of what was lost in the fire if you will. But for most bereaved businesses, it has been a case of some rather than most because their insurers have gone out of their way to diligently underestimate their losses. And the reason why so many policy holders experience such hefty annual premium increases has very little to do with them. It has more to do with covering the losses on claims that others have made.
And covering the losses caused by poor underwriting across the board and corporate mismanagement as a rule of thumb. Captive insurance industry standards scale the heights of the insurance industry in general. It is governed by a completely different code of conduct. And it prioritizes the business owner who has bought into the service. It seeks not to weigh what an insurer can or cannot afford to pay its insureds. Rather, it seeks for new reasons why the deserving business practitioner should be paid.
This last motive may seem a bit too much if you were viewing matters through the peer glass of the insurance agent. Of course, it will not willy-nilly, blindly or randomly just go ahead and pay claims if and when loss or damage occurs. In fact, the likelihood of loss or damage even occurring are far less when the client has covered himself with a captive insurance vehicle. This has something to do with sound risk management principles being imposed but never as harshly or unfairly as conventional insurers would have it.