Captives
ECONOMIC BENEFITS
Premium Retention
By creating your own insurance company, you retain the insurance premiums, net of any losses and claims, you would otherwise pay to your current insurance providers. These retained premiums are invested, and your captive can use these premiums for many purposes: covering future losses, paying dividends, making loans to your operating business, etc.
Tax Benefits
Captive insurance companies provide businesses with attractive tax benefits. The premiums paid to the captive insurance company are tax-deductible to your operating business, and compound in value in a tax-deferred manner at the corporate tax rate, which is likely lower than what you’re likely paying now.
Insurance Benefits
Tailored Coverage
Captive insurance allows businesses to tailor their coverage to meet their unique needs. They can choose the type and level of coverage that best suits their business, rather than being limited to the options provided by traditional insurance providers.
Financing Benefits
Your business can lower its borrowing and financing costs and hassles by lending itself money out of your captive insurance company.
Insurance Benefits
Your captive insurance company can be structured to suit your company’s specific needs in ways that can: lower overall insurance costs, tailor coverages, and provide coverages that may not exist in the commercial market.
