Recent years have seen a proliferation of new, alternative insurance structures. One of the most popular of these is the shared captive structure. Large corporations have long enjoyed the ability to create a subsidiary company that exists solely to insure the parent. The parent corporation has full control of the captive, and can modify it to meet the exact requirements of their risk management plan. In this way, they create an insurance entity that meets government regulatory requirements as well as their own needs. Small and medium-sized companies who would like to have this kind of tailor-made solution, but do not have the resources to fund a captive to the levels required by the government, can choose a participatory captive solution. One of the most popular of these was created in 2010: the Delaware series LLC captive.

 

Of the various types of captive solutions, including association, agency, and rent-a-captive, the series LLC offers a very flexible solution for a wide range of clients. The resource backing for the captive can be expanded into the same locales as the clients. For instance, if a Delaware series LLC, which only retained U.S. clients, wanted to include a foreign company into the group, the real estate or other hard collateral could be located in that foreign country. This was very exciting for companies that wished to participate in a captive, while wanting to maintain a legal boundary with other participants.

Why Is There So Much Excitement About Delaware Series LLC Captives?