While businesses may like the freedom to dictate coverage terms that's allowed by insuring through a captive, this option also comes with increased financial risk. (Credit: masterzphotofo/Adobe Stock) While businesses may like the freedom to dictate coverage terms that's allowed by insuring through a captive, this option also comes with increased financial risk. (Credit: masterzphotofo/Adobe Stock)

Nine out of 10 Fortune 500 Companies use captive insurance, according to the National Association of Insurance Commissioners (NAIC). This form of 'self-insurance' involves organizations creating their own insurance companies instead of buying insurance from an established carrier.

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