Captive Insurance and Alternative Risk Financing

What is a captive insurance company?

A captive is an insurance company formed by the business owner to insure risks to his business. It can be risks currently insured in a private market or risks he currently cannot obtain coverage for in the private marketplace. A captive is a risk transfer vehicle which can have positive tax benefits to its owner. Captives can be 831(b)s or micro captives, group captives, protected cell captives or single parent captive.

Why would a business owner desire to form a captive?

There are three reasons why a business owner would consider a captive:

  • Control over his insurance program
  • Asset protection for his business
  • Profit from operating and owning a captive insurance company

Captive insurance companies have been growing dramatically over the last decade. Captives were once considered only for the Fortune 500 companies but now companies in the small to mid-market size level are finding captives very useful.

Beacon Insurance Group partners with a leading captive management company, Venture Captive Management and many of the leading service providers necessary to setup and operate a captive. This includes Merlinos & Associates actuaries, The Littleton Group claims, and leading captive attorneys and auditors.

Find out how the most knowledgeable providers can help you make your captive profitable. Contact us today.