About Constitution Insurance Company
Constitution Insurance is owned and operated by Chicago-based captive manager M.R. Mead & Company, with offices also in Wisconsin and Missouri; and Caitlin Morgan Insurance Services, a prominent wholesaler and Managing General Agency (MGA) with offices in Indiana and Ohio. Located in Nashville, Tennessee, Constitution is a Protected Cell Captive (PCC), offering captive solutions for small and mid-sized businesses, including insurance agencies, brokers, MGAs and other insurance intermediaries.
The protected or incorporated cells of the PCC function as independent entities and can take the form of a C corporation, an S Corporation, a partnership or a Limited Liability Company. Under Tennessee law each unit and its assets and liabilities are separate from the actions of the other entities. A legal “ring fence” exists to protect the assets of one cell from creditors of another cell.
Managing Risk More Efficiently
Constitution is working with several private firms to establish structures to help them manage their risk in a more cost-efficient manner without having the management responsibilities of an insurance business that a stand-alone captive require. These firms can finance their own risk to a larger to smaller degree with the ability to integrate cost efficiencies into their overall balance sheet with a PCC without the financial commitment, fiduciary responsibility, and time devoted to a single-entity captive. Constitution’s Board serves as the Board for the client’s interests, along with the client and its representatives. In essence, our clients receive the benefits of owing a captive while eliminating many of the liabilities. We can do the same for you.
The Constitution Advantage
- You can enter and exit the PCC with ease.
- You avoid much of the cost in time and money needed to learn about insurance company protocols and customs so you can focus on your core business.
- You gain greater efficiency in the use of your risk dollars. You use your money more efficiently as the cells cover only their actual exposure, not funding for a regulatory minimum. This eliminates having capital that’s not producing a return.
As an insurance agency, you can set up an entity to act as an agency captive, ceding risk from one of your traditional insurers into Constitution and the specific cell or unit beneath Constitution. The cell could be further subdivided to offer an individual entity to each customer.
A group or association could opt to have an entity with a sub-entity for each member. The group cell could function as a risk pool for the separate limits.
Time to Consider a PCC?
A captive solution with Constitution Insurance may make sense for the successful business owner, association or high net worth individual looking to better manage their risks. We can help you choose the right structure to address your coverage and risk-financing challenges and turn a dead balance sheet item into a profit-making entity. Call us at 877.845.5069.