If you're in the commercial insurance market, you have a lot of options. A protected cell captive service or PCC is similar to single-parent captives and group captives. With a PCC, you have cells created and owned by cell users. Each cell is legally separated from the rest so that each cell can issue its own insurance policy.
Should You Consider a PCC?
There are a variety of businesses that may benefit from establishing a PCC. The businesses that do the best are those that are too small to have a single captive. If you do not want to establish a group captive, then a PCC might suit your needs better. Additionally, if you need to access specialist reinsurance markets, you may need a protected cell captive. You have better access to niche services that you might not find with traditional companies.
How Can You Benefit from a PCC?
A PCC can undertake most businesses. One of the advantages that motivates companies is the lower administrative and setup costs. For less cost, you also have more flexibility and better risk management. The PCC is under your control in a way that you wouldn't have with traditional insurance options. There is also no minimum allocation of capital.
If you own a small business and are unsure about what type of commercial insurance you should invest in, it may be appropriate to look into protected cell captives.