Captive Insurance Benefits: They may be more attractive and available than you think!

by Hiller Hardie 26. August 2013 14:47

When non traditional risk management programs are discussed, most of our eyes gloss over and we quickly lose interest. However, establishing a captive insurance company is a way to formalize self insurance that may provide significant benefits to the business owner. These benefits include the ability to:

·         Insure risks not economically insured in traditional markets;

 ·         Stabilize the cost of insurance;

·         Create possible estate planning, business succession and tax planning opportunities; and

·         Enhance cash flow and wealth preservation/accumulation.

The ideal captive candidate is the owner of a business with strong cash flow (>$450,000 per year), a history of steady profitability and uninsured risk(s) with in the business. Business owners who meet these criteria would be well advised to consult a knowledgeable professional to determine if they are a good candidate for establishing a captive. A feasibility study can be performed at little to no cost.

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Categories: Advisory | Assurance

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