Constitution Insurance Company

The Advantages of Captives For Small Businesses

For small businesses, coming up with the capital to form a Captive Insurance Company can be a formidable financial burden. In many cases, it may be one that can’t be overcome… unless you talk to the professionals at Constitution Insurance Company.

Constitution Insurance Company, LLC is a captive cell company based in Tennessee. Formed by Michael R Mead and business partner Christopher Murray, Constitution Insurance Company provides smaller companies the opportunity to participate in their own captive.

A captive cell company affords small businesses that cannot come up with the capital necessary to form a captive Insurance Company the opportunity to enjoy the benefits of being a captive company without the initial (and sometimes prohibitive) capital outlay.

As a captive cell company, Constitution Insurance Company employees a protected cell company concept.

A protected cell captive insurer maintains assets in its own walled-off cell. This means that the Assets in one participant account may not be used to pay liabilities in another’s, unless there’s some sort of pre-established agreement to do so. A protected cell company is formed in a manner that allows each cell within the company to be shielded from not only capital and surplus sharing with other cell owners but also separates and shields them from any legal action brought against another participant. Even should a cell liquidation occur, there is no legal recourse against any other cell in the company.

In essence, a protected cell company enjoys the benefits of being a captive insurance company without having to have that huge initial capital investment.

Constitution Insurance Company offers a number of benefits to small businesses through this protective cell company scenario:

  • Provides an effective and affordable alternative to Conventional Commercial Insurance
  • Provides similar benefits of captives with reduced start-up and ongoing cost
  • Gives you more control over claims
  • Allows you to issue insurance policies and access reinsurance markets, similar to a stand-alone insurance company

The professionals of Constitution Insurance Company can provide the details you need to establish your own protective cell company under the Constitution Insurance umbrella.