The Basic Captive Structure

Who Should Consider a Captive?

  • Businesses in an insurance inadequate field
  • Privately held family business (all business types)
  • Highly compensated professionals
  • Revenues over $5 million per year
  • Businesses which are consistently profitable

Who can own the Captive?

  • Individuals
  • Trust(s)/FLP(s)
  • LLC(s)
  • Partnership(s)
  • Corporation(s)

Common business types participating:

Construction, finance, energy, healthcare, retail, transportation, general contracting, professional athletes, and many more...


  • ERS Insurance is a Utah Captive Insurance Company
  • Premium is $1 million
  • Policies - $1 million limit per coverage
  • Enterprise Risk Strategies is the Captive Manager for both ERS Insurance and Small Insurance Companies.

How it works

  1. Insured pays premium to Enterprise Risk Strategies
  2. Enterprise Risk Strategies remits premium to ERS Insurance
  3. ERS Insurance issues policies to Insured with $1 million limit per coverage
  4. ERS Insurance re-insures to Captive's 1st layer of risk (first dollar through a set limit) [A]
  5. ERS Insurance places 2nd layer of risk (total limits net of 1st layer of risk) into reinsurance pool
  6. ERS Insurance cedes risk in reinsurance pool to Captive [B]