Sean King, JD, CPA of CIC Services was recently interviewed by Captive Insurance Times (CIT) on a recent release from the GAO regarding offshore transactions and captive insurance. Sean points out that the recent release from the GAO provides “no new information,” and the IRS continues to refuse to provide guidance to the captive insurance industry. Even though Congress has provided clear guidance on captive insurance, the IRS instead prefers to create fear, uncertainty and doubt because it knows the vast majority of captive owners would follow any lawful and reasonable guidance published.
In this article for Entrepreneur, CIC Services’ Randy Sadler dives into how business disruptions like trade wars, tariffs, and trade sanctions caused by global politics can affect a company’s bottom line. He describes ways businesses can offset these by increasing prices, absorbing the costs, switching suppliers, or insuring against them with captive insurance.
In this article for Captive International, CIC Services’ Randy Sadler explains how litigation has been shown to rise during economic downturns and how captive insurance can protect companies, especially smaller businesses, in such uncertain times.
In this article for Business Partner Magazine, CIC Services’ Randy Sadler discusses the importance of profit for the success of a business. Profits can make or break a business, so Sadler identifies the potential reason your bottom line is suffering. Also, retained earnings provide a safety net during difficult times, so maximizing profit is important […]
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.
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.
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.
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.
Choose the captive manager with a proven track record of fighting for its clients, and winning.Learn more.