It would appear the Internal Revenue Service (IRS) is short on supporters, following its recent rant against small captive insurance companies that make 831(b) tax elections.
First, the breaking news. The Senate Finance Committee just voted to increase the premiums ceiling on small captive insurance companies
Over the last four weeks, we have developed the thesis that most small and mid-size businesses are under-insured and that for many, the best remedy is to own their own captive insurance company. Owning a captive insurance company enables small and mid-size business owners to blend third party commercial coverage with coverage by their captive. This blended approach
Small businesses that own their own captive insurance company are quite often far different from large corporations. These differences are well understood by small business owners, their staffs and the service providers that support them. Not surprisingly, they also have a different approach to risk management, operations, personnel and financial strategies. There are a myriad of solid business reasons for small and mid-size business owners to own their own captive
Over the last two weeks, we have put forward the thesis that most small and mid-size businesses are underinsured and that for many, the best remedy is to own their own captive insurance company. Owning a captive insurance company enables small and mid-size business owners to blend third party commercial coverage with coverage by their captive. This blended approach results in far more robust coverage, helps overcome the “sunk costs” trade-off of purchasing insurance, and can even turn risk management into a profit center.