Captive Benefits

• Issue Coverage

  A captive issues coverage for specific risks to a business for which coverage from commercial insurance carriers may be unavailable or unaffordable.

• Collect Insurance Premiums

  Instead of paying premiums to a commercial insurance carrier, premiums may be paid to a captive.

• Premiums May Become Profit

  Any money that is not utilized or paid in claims stays in reserves, is investable, and may become profit in the captive.

• Business Deduction

  The premiums paid to the captive may qualify as deductible for the business or professional practice.

• Accumulate Wealth

  It has the potential to accumulate wealth in the form of premium reserves on a tax-advantaged basis.

• More Control

  The equity inside a captive is controlled by its owner(s).

• Investment Opportunities

  The underwriting profits, less the reserve capital, can be invested at the owner’s financial institution of choice.

• Profit Distribution

  Subject to certain restrictions, profit distributions can occur at the owner’s discretion.