As a business grows, businesses owners may choose to start or acquire an additional business that serves their core business.  This is often described as vertical integration, and it is often effective because a supplier or service provider is already making a profit serving the parent company. For example, a manufacturer may choose to purchases […]

Why CFOs Love Captive Insurance Companies and Why Small Businesses Should Too Many CFOs and small business owners alike yearn for the day when their company can build a “war chest.”  This war chest gives the business flexibility to invest during times of opportunity or to protect the strategic position or resources during uncertainty or […]

This is a question that I am routinely asked – “what types of businesses own their own insurance company?”  A better question would be “what types of businesses would benefit by owning their own insurance company?” 

This week, we think it fitting to share Mick Higley’s “By The Number$” synopsis as we head into 2013.  Mick is a respected industry analyst, publisher and friend of CIC Services, LLC.   While a deal on the fiscal cliff has apparently been reached between President Obama and House Republicans, many of the tax increases outlined […]

In addition to gaining the ability to self-insure and to own a profitable second business, a captive insurance company can also facilitate the purchase/sale of a business.  Prior to addressing this unique benefit, it’s worth noting the primary reasons that businesses form their own insurance company – specifically a captive insurance company. To manage business […]