What is a Captive
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A captive is an insurance company that issues coverage for specific risks to a business for which coverage from commercial insurance carriers may be unavailable or unaffordable.
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Instead of paying premiums to a commercial insurance carrier, you pay premiums to your captive. Any money that is not utilized or paid in claims stays in reserves, is investable, and may become profit in your captive.
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With a captive insurance company that you own, you manage risk well and you create equity through low claims and prudent investment.
I already understand captives and I want one for my business>
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A captive is a smart risk management insurance structure that, when executed in compliance with state insurance regulations and IRS guidelines, may provide more cost effective business risk coverage while simultaneously building equity.