Captive Insurance Companies
Captive Insurance Companies (CICs) - Mitigate Risk, Build Wealth
CICs offer an alternative solution for companies to fund, manage and mitigate risk. For decades, forward-thinking organizations have formed CICs to strengthen the value and efficiency of property and casualty insurance, fund employee benefit programs, or purchase life insurance.
In a CIC, business owners create their own insurance companies to use portions of pre-tax business income to finance business risk, which otherwise may be too costly or unavailable through traditional insurance carriers. Of course, you can self-insure. If you bear uninsured risk, which is likely, owning a CIC may be the ideal strategy for you.
What’s more, every dollar paid to the CIC reduces the assets of the business by the same dollar. If the business begins to fail, creditors cannot get to those dollars. That’s why CICs have been referred to as one of the best business asset protection strategies on the market today.
CICs represent an active part of our business because they contribute so effectively to the financial well-being of certain types of clients. In each case, a thorough investigation takes place to determine if the strategy makes sense for your situation.
You can count on us for advice, design and implementation of the right CIC for you.
Don’t underestimate the advantage of a CIC for your business.
The main purpose of a CIC is to save money on insurance. However, lesser known and larger benefits do accrue to owners. With CICs:
- You’re more focused on overlooked risk management
- You can draft policies, select lawyers, and process claims for greater efficiency; no wasted premiums
- You set aside pre-tax dollars for potential risk
- You gain the long-term benefits of holding insurance
- You retain any realized premium profits vs. some unrelated third party insurer
- You create wealth retention, asset protection, and even wealth transfer