Summer is all but over, and Labor Day is behind us. The next few months always fly by, and Thanksgiving and Christmas will be here before you know it. For this reason – and based on feedback from prior years – we are changing our beloved year end reminder to the 60 BUSINESS Day Countdown.
Proper formation of a captive insurance company requires adequate time for a thorough risk assessment, underwriting, a feasibility study including actuarial work to price insurance policies and develop a pro forma, corporate formation, licensing and the issuance of policies. It’s important to start the process soon! A captive is a choice to own your own insurance company.
Captives can be employed to:
1. Replace commercial insurance
2. Insure enterprise risks
3. Insure warranties
4. Issue performance bonds
5. Insure employee benefits
6. Insure Bundled Program risks
7. Address any combination of 1 through 6 above
Benefits of captive ownership include:
1. Improved risk management
2. Improved cost control
3. Improved business practices
4. Asset protection
5. Insurance profit
6. Wealth accumulation
7. Tax savings
If you’re considering forming a captive in 2019, let’s start the conversation this week.
FOR MORE INFORMATION:
RANDY SADLER. Principal