Norfolk Captive Insurance
As a Captive Manager, CIC Services works with clients in Norfolk, VA to help them own their own insurance company, known as a captive insurance company (CIC). Our streamlined processes make it possible for a client to set up their captive in 6 to 8 weeks with CIC Services, LLC. Insurance premiums paid to CICs are tax deductible, and clients we serve will typically reduce taxable income by $400,000 to $1.2 million while simultaneously improving their risk management umbrella.
What Are The Advantages Of Owning An Insurance Company?
A captive insurance company is a powerful financial and risk management vehicle. Owning a CIC provides improved risk management to a business, related businesses or a professional practice. A CIC is also a powerful asset protection vehicle as assets in a well- structured CIC are inaccessible to creditors.
Successful insurance companies accumulate significant reserves to insure the risks for which they issue policies. Business owners who own their own insurance companies are better positioned to accumulate and protect significant wealth for the future.
In addition to insuring risks for its customers, one of the primary objectives of any insurance company is to build up significant reserves for the future. And, insurance companies enjoy many tax advantages as they accumulate reserves. Captive insurance companies are no different. When a business owner sets up a captive insurance company to formally insure risk, he or she also benefits by being able to accumulate wealth in a more tax efficient vehicle. Parent companies pay tax deductible premiums to their captive insurance companies. And, premiums paid to a “small” insurance company making an 831 (b) election are taxed at 0%. “Small” insurance company is defined as collecting annual premiums of $1.2 million or less. The result is a remarkably efficient vehicle to accumulate wealth for the future.
CIC Services, LLC has been helping business owners and professionals own their own insurance company since 2005. Please call or e-mail us to discuss if a captive insurance company is the right move for your business.