In today’s economy and changing insurance marketplace, companies—especially those in the hospitality, gaming, and restaurant industries—can use their existing captive insurance company or form a new one to gain significant economic as well as business and risk management benefits. One such benefit is the flexibility that a captive can provide in a transitioning or hard market. Establishing captives takes time and research, and many organizations are currently evaluating how one might provide attractive alternatives to the traditional insurance marketplace. The three most common structures are:

• Wholly owned (i.e., single parent) captives, which are the most common structure for the hospitality and gaming industry;
• Group captives; and
• Rent-a-cell programs (becoming more attractive due to time and cost to establish and operate).