Lexington Captive Insurance
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Since 2005, CIC Services LLC has helped business owners in Lexington, KY better manage risk and double the size of their financial war chest.
CIC Services, LLC helps both small and medium size businesses and business owners set-up and own their own insurance company. There are many benefits to owning a captive insurance company.
A captive insurance company can provide casualty insurance coverage to the parent company.
A captive insurance company can formally insure business risks not currently covered by third party insurance.
By owning its own insurance company a business is able to retain earnings as a pre-tax expense. And, retaining earnings pre-tax (as insurance reserves in the captive) results in a bigger base of assets that can grow through investments.
Reserves in the captive can lower future insurance costs. As reserves accumulate, a business may shift a portion of its risk management onto it captive and away from third party insurers. Over time, the company’s captive insurance company will build up reserves that give the business greater flexibility to make strategic financial choices.
Reserves of a captive insurance company can be taken as dividends to the owners of the captive insurance company at a future date. Often in business, timing is everything. A captive that builds strong reserves gives business owners flexibility to take dividends at opportune times.
When properly structured, the assets of the insurance company are secured from creditors.
CIC Services LLC works with business owners to ensure their captive insurance company is viewed and managed as part of a company’s overall risk management financial strategy.
Game-Changing Financial Vehicle for Business Owners and CFOs
Since 2005, CIC Services, LLC has helped clients in New York discover their own game-changing financial vehicle. This discovery is the financial advantages afforded to business owners and professionals derived from owning their own insurance company.
All risk is financial.
An insurance company is a powerful financial vehicle that can provide tremendous added value to businesses and business owners. CIC Services LLC helps clients set-up, own and operate their own insurance company – known as a captive insurance company.
First and foremost, a captive insurance company can provide more effective risk management and casualty insurance protection to a parent company or companies.
Owning a captive insurance company can enable business owners to more effectively address the following wants and needs:
- Reduce insurance costs
- Improve risk management and insurance protection
- Experience tax savings
- Improve asset protection
- Accelerate wealth accumulation
- Facilitate estate transfer to future generations
- Provide an alternative to non-qualified retirement or deferred compensation plan
- Provide golden handcuffs or golden parachutes
- Facilitate buy-sell, buy-inn, or buy-out arrangements
- Provide an alternative to qualified retirement plans
What Is A Captive Insurance Company?
A captive is a unique but REAL casualty insurance company. It includes its own corporation, insurance license, reserves, policies, policyholders, and claims. It is a formal way for business owners to self-insure, and captives are generally formed to insure the risks of owners and related or affiliated third parties.
There are many risks that all businesses regularly face and informally self-insure. It’s worth noting that businesses informally self-insure with after-tax dollars, meaning that a businesses’ “rainy day fund” is usually comprised of retained earnings that have already been taxed. With a captive in place, businesses can formally insure risks not normally insured by third party insurers.
Contact CIC Services today and we’ll perform an initial no-cost analysis of your current insurance program to help you determine if owning a captive insurance company through the CICS Bundled Program is right for you and your business.