A Captive Insurance Subsidiary for 2012? The Time May Be Right.

by Kelley Owen 31. January 2012 10:12
  One of the biggest reasons is because existing premiums have increased to very high levels.  Any profession with errors and omission insurance, product liability exposure and/or cyber risk have seen large increases I premiums.  Many companies have considered a captive but have yet to pull the trigger.  Typically, the analysis should begin at the beginning of the second quarter so that implementation can be completed by year end.  Starting any later may lead to a rush in the fourth quarter to implement and unforeseen issues could arise and limit the benefits for the current year.  And captives may be a part of a larger estate or business plan that will take the remainder of the year to fully implement.  
Categories: Tax