What is the Cost of Flight Plan 365©?

You’ve decided captive ownership is a comprehensive way to protect your business. You’re looking to mitigate your risk while becoming a profitable captive owner. While this process might make you a little nervous, it’s also exciting as you create more robust safety and risk management programs to better your business! And that’s why we created a process tailored to you and to make you successful as a captive owner.

ReNu’s Flight Plan 365^© offers a proven, comprehensive way to become a profitable captive insurance owner with a comprehensive risk management program.

But how much does it cost to take advantage of this resource? This is a question we get asked all the time at ReNu, and we are committed to answering it directly and transparently. The first thing to understand is that there are separate costs associated with Flight Plan 365^©  before and after a business enters a captive.

After you have read this article, you will have a clear idea of the costs associated with this program. 

What’s the cost before a business enters a captive?

The Pre-flight stage of Flight Plan 365^©—that is, the risk management program audit—requires an up-front investment of $4,995 to help the business prepare for the captive underwriting process and enter a captive. Any captive risk committee will want to see a complete overview of the business that includes loss control, risk management policies and procedures, claims data, risk mitigation strategies, etc. The risk committee will use this data to determine whether the business will be a consistently profitable member of a captive, so the quality of the preparation process will have a direct impact on the outcome of the captive underwriting result.

This payment can be made with a $2,000 deposit, with the balance to be paid upon entering the captive. 

What’s the cost after the business enters a captive?

Once the business has entered the captive, the business owner’s focus shifts from admission to profitability. On average, businesses experience a 28% reduction in premiums over the first two to three years after entering the captive.

Achieving and maintaining these premium reductions depends on consistent evaluation of safety and risk management. This means continually strategizing, implementing changes, and monitoring and adjusting based on the ever-changing landscape.

When a business partners with Flight Plan 365^©, we charge a percentage of their premium to take care of those things, typically fifteen percent. This percentage is no different from what traditional carriers pay agents and brokers, with a vital difference—now the business owner gets full transparency on what the amount is because it’s no longer hidden. Also, rather than paying that percentage for the carrier’s generic program, the business is now reaping the benefits of having the Flight Plan 365^© team focusing on a risk management program that has been specifically tailored to their business.

Does Flight Plan 365^© have any hidden costs? 

There are no hidden fees or costs with Flight Plan 365^©.

That being said, some of the recommendations that come out of the “take-off” stage may come with their own out-of-pocket expense, and ongoing operational costs may lead to potential changes over time. Some examples may include: 

•         Development of processes and procedures related to risk management;
•         Training/certifying staff in the new processes and procedures; 
•         Establishing checks and measures; 
•         Evaluating, assessing, and reporting on risk management;
•         Making adjustments to existing operations; and 
•         Design or redesigning functional areas, etc. 

While these types of expenses may be related to the new and improved risk management program, they do not have any direct impact on the cost of Flight Plan 365^© itself. Still, they may have a bearing on how profitable the business becomes as a captive owner.

What makes the cost of Flight Plan 365^© a good investment for a business? 

Buying insurance from an external provider buys coverage—owning their own insurance lets a business invest in control. Only the business owner knows the priorities of their business. Only the business owner can ultimately decide whether to take a chance on entering and owning a captive alone or invest in a program like Flight Plan 365^© to get it right the first time. 

When weighing which approach to take, the following considerations might help:

Entering and owning the captive alone may make sense if the business owner can:

• Get into the details like never before, including making an in-depth analysis to prepare for the captive underwriting process and help determine potential captive profitability; 
• Dedicate 10 to 15 hours per week in their business’s ongoing safety and risk management program; and
• Understand the risks associated with their business from the outside, which calls for the ability and expertise to step away from the internal workings of the business and see everything from an outside perspective—this is vital to being able to see things that may have been missed before. 

Flight Plan 365^© might be a better fit if the business owner wants to:

• Gain time and make less effort, knowing they can rely on the trained eye and efficiency of a risk advisor who effectively acts as their Chief Risk Officer; 
• Receive fully developed strategies and an implementation plan from experts who see things that the business owner might miss; and 
• Be involved in decisions to monitor and adjust so captive ownership remains profitable.

How long does it take to see the benefits of using Flight Plan 365^©?  

As you can see, the cost of enlisting the expert support that comes with Flight Plan 365^© is far outweighed by the potential multiple returns on that investment. There are no hidden costs—all pricing is clear up front and completely transparent.

Now that you’ve seen how the pricing works for Flight Plan 365^©, the most helpful article to read next is:

•         How Flight Plan 365^© Works: Leading to Profitable Captive Ownership

At ReNu Insurance Group we offer Flight Plan 365^© and captive insurance throughout the US. Our insurance specialists are available to discuss any questions you might have.