Benefits
The success of any business depends upon the effective and efficient use of capital. While a Captive Insurance Company is commonly viewed as a disciplined way of retaining and financing risk, it can be a means to better growth and accessing corporate capital as well as implementing broader corporate strategies. 90%+ of Fortune 500 companies have their own insurance company, and Warren Buffet/Berkshire Hathaway own approximately 12 insurance companies....and there are a multitude of reasons for that.
Captive Insurance has become an increasingly important tool used by companies to manage their business risk and promote strategic initiatives. Captives are essentially a form of formalized self-insurance with all the advantages of a traditional third party insurance agreement. These advantages include: the opportunity to earn an underwriting profit, improve risk management and loss control, coverage for unusual, remote or hard to place risks, direct access to reinsurance and potential tax savings.
A captive insurance company allows successful businesses to reserve for these risks, and if properly structured and underwritten, will cover you like a traditional insurance carrier. Premiums paid by your business to your captive insurance company may be tax deductible as an ordinary and necessary business expense.
We strive to help business owners develop a solid foundation and business strategy so they can be more successful and create another profit center that serves multiple functions for the business. We will work to improve sales, productivity, organization, company culture, and employee relations. Find out how we can help you and your business today!