September 2014

It used to take a long time, in many cases a year or more, for a business to set-up a captive insurance company.  And stories about the long road many companies faced in setting up their captive arrangement linger on, often in the minds and lore of “old guard” captive managers and attorneys who were able to charge larger fees by leading captive candidates through a long, over-analytical, dragged-out process to set up their own insurance company.  This perception was further aided by domiciles and regulators who made the process unnecessarily arduous.

Fortunately, much has changed in the captive industry over the last ten years, making a past reality that “It Takes Too Long To Set Up A CIC” our choice for Myth #8.  

Every year, a few self-proclaimed captive experts will write articles warning “if a financial advisor approaches you about setting up a captive insurance company, run”.  They don’t mean that you should necessarily run away from doing a captive, mind you, only that you should run from your financial advisor and toward (they never actually say but strongly imply) them.  If these talking heads are to be believed, any financial advisor approaching you about a captive insurance company has an ulterior motive:  Such advisors are just looking to sell you a tax scheme for their own selfish reasons.  By contrast, the talking heads spreading such warnings would have you believe that they care only about helping you manage your business risk and are otherwise completely unbiased.

Regrettably, rather than having the intended effect, the confusion and uncertainty that result from the misguided admonitions of the talking heads often scare

Every year, hundreds (maybe thousands) of business owners that would benefit immensely from the risk management, asset protection and tax saving benefits of owning their own captive insurance company are frightened away by advisors or so-called experts who suggest that, “captives are an audit target.”

Myth # 10 is characterized by both injustice and disservice.

Let’s start with injustice. 

As your business or clients review 2014, estimate 2014 tax liabilities, and enter the planning season for 2015, now is the right time to consider a captive insurance company.

Sean King, JD, CPA, MAcc, Principal and In-House Counsel of CIC Services, LLC has recently developed an educational video explaining the powerful benefits of Enterprise Risk Management (ERM) utilizing a Captive Insurance Company (CIC) for small and mid-size businesses.

Sean explains how small and mid-size businesses can implement the same risk management, tax saving and wealth accumulation strategies employed by most Fortune 1000 companies.

To watch Sean’s video presentation, CLICK HERE.