Sean King, JD, CPA of CIC Services was recently interviewed by Captive Insurance Times regarding the IRS’ latest scare tactic in its PR campaign against small captive insurance companies. Just in time for Halloween, the Service encouraged captive owners to seek advice from an “independent CPA.” This ridiculous assertion implies their current CPA must be misguided. The latest release all trick and no treat, and is really nothing new, and Sean points out why in this interview. He is joined by other industry leaders as well.
2020 has clearly demonstrated that far more businesses should have been protecting themselves by owning their own captive insurance company. Are you one of these people? Watch the recording of our “60 Day Countdown & Ideal Business Candidates For A Captive Insurance Company” webinar.
It is clear that businesses need more insurance and more money. A captive insurance company is the only strategy that delivers both. Every year, CIC Services does the 60 Day Captive Countdown.
This webinar covers:
The significance of the countdown for small and middle-market business owners and their trusted advisors, including
P&C Insurance Agents, Risk Managers, CPAs, and Financial Advisors.
The characteristics of businesses and business owners that make for an ideal captive insurance company candidate.
The pandemic and riots have forced thousands of businesses into bankruptcy with many more still on the ropes. It’s impossible to predict what the next crisis will be, or when it will strike. Small and middle-market business owners (and their trusted advisors) that are surviving or thriving during 2020 should pause and take a hard look at protecting their companies with a captive insurance company now – while times are good. It’s true that businesses with more insurance and more money will be on a far stronger footing and better prepared to survive whatever calamity strikes in the years ahead.
Ready to prepare your business for what’s to come?
Watch Recording:
Stronger Business Model
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.
Improved Cost Controls
Captive owners can leverage their ERM and captive programs to improve their negotiating ability when renewing their commercial insurance coverages.
Wealth Accumulation
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.
Advantageous Tax Treatment
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.
Insurance Profits
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.
Improved Risk Management
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.
Asset Protection
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.
