There are multiple types of captives, and the term “captive” is often used generically to describe all of them.

A wholly owned captive is a captive where 100% of the company is owned by the employer.

A rent-a-captive (or rental captive) is a captive formed by an independent, third party. The third party then allows employers to use a portion of the captive for a fee. Many employers, particularly smaller employers, prefer a rent-a-captive as it is more cost effective, has fewer barriers to enter and is easier to exit.

Many rent-a-captives are structured to protect each employer from exposure to other employers using the same rent-a-captive. These rent-a-captives are typically referred to as segregated account or protected cell companies.

Garnet Captive forms both captive and rent-a-captive programs. Contact us so we can determine the most appropriate captive vehicle for your client.