2015 CIC Formation Deadline Extended!
There is still time to set up a captive insurance company and pay tax deductible premiums in 2015. Continue Reading
There is still time to set up a captive insurance company and pay tax deductible premiums in 2015. Continue Reading
It is not surprising that captive insurance companies have been gaining prominence in recent years. There was an era when captives were primarily utilized by large corporations, but their adoption has accelerated among small and mid-market companies of late. There are two major reasons why captives are gaining traction with small and mid-size businesses.
The first is that captive insurance companies are a powerful financial vehicle that resolve a contradictionContinue Reading
Life is full of costs, and it seems like they are always going up. If you’re like me, you probably don’t like to think about costs. Sometimes, it’s easy to think, “I’ll worry about that later,” or “I’ll pay that later.” But, it’s early November, and there is a substantial cost that is urgent and looming. Successful business owners and their advisors have only a few weeks to address this very important cost: The Cost Of Continue Reading
Businesses who implement ERM programs combined with a captive to plan for unforseen risks stand a better chance of surviving, and passing to the next generation.
Captive owners can leverage their ERM and captive programs to improve their negotiating ability when renewing their commercial insurance coverages.
Profitable captives will see their reserves grow over time to significant sums which can be utilized by their owners for retirement or other life cycle needs.
Insurance companies are the only entities allowed to expense projected future expense against current-year revenues (claim reserves). Small captives (premiums of $2.2M or less per year) may also elect to only be taxed on their investment income, potentially resulting in substantial tax savings for their owners.
Utilizing your captive to reduce or replace your commercial insurance coverage with policies issued by your captive allows you to capture insurance profits previously realized by the carriers.
Adding a captive and ERM program will result in a higher awareness and enhanced strategies for how your organization thinks about and plans for all risks.
The assets held by a properly organized and managed captive enjoy a very high degree of protection from both the business’ and business owner’s creditors.