The Basic PIC Structure
Who Should Consider a PIC?
- Businesses in an insurance inadequate field
- Privately held family business (all business types)
- Highly compensated professionals
- Revenues over $5 million per year
- Businesses which are consistently profitable
Who can own the PIC?
Common business types participating:
Construction, finance, energy, healthcare, retail, transportation, general contracting, professional athletes, and many more...
- ERS Insurance is a Utah PIC insurance company
- Premium is $1 million
- Policies - $1 million limit per policy
- Enterprise Risk Strategies is the PIC Manager for both ERS Insurance and PIC
How it works
- Insured pays premium to Enterprise Risk Strategies
- Enterprise Risk Strategies remits premium to ERS Insurance
- ERS Insurance issues policies to Insured with $1 million limit per policy
- ERS Insurance reinsures to PIC 1st layer of risk (first dollar through a set limit) [A]
- ERS Insurance places 2nd layer of risk (total limits net of 1st layer of risk) into reinsurance pool
- ERS Insurance cedes risk in reinsurance pool to PIC [B]