My business pays over $1 million in insurance premiums annually, with few claims
My business can't get the right insurance coverage for a particular risk, or the insurance is too expensive
My business group or association pays over $2 million in insurance premiums annually, but claims are far below that amount
My business has letters of credit on the books to cover a high insurance deductible program
I need an estate planning vehicle
I would like to provide insurance to my customer base, for risks that I understand
My business has consistent taxable income of over $750,000
I need to protect my business and personal assets
Pay insurance premiums to your captive, retain the underwriting profit and investment income
With a captive or alternative risk structure, you may be able to obtain reasonably priced insurance with the coverage you need
Form a group captive, and all participants can benefit from insurance savings and investment income
With an alternative risk structure, those letters of credit can be turned into tax deductible premiums
A captive can be owned by your children or trust, effectively moving assets out of your estate, with no gift or estate tax
An association or group captive can allow you to do this, and retain the underwriting profit and investment income
A captive, properly structured and operated, can reduce your business taxable income and increase investment income
A properly-formed captive has many asset protection benefits