Your shopping cart is empty:
YOUR CURRENT SUBTOTAL
$0.00
$0.00
Home > Services > Domestic Wealth Planning > Creating the Right Business Entity > Is Captive Insurance an Option For Your Company?
Oil and shipping companies are a few of the companies that use “captives.” Captives are used to insure and reinsure risk of subsidiaries and affiliates, such as the risk of shipping fuel and commodities. Captives offer solutions to situations such as what happens if the bananas get some fruit rotting bacteria on the way to delivery: or what happens if the tanker pulls into port and the recipient defaults: what happens if the UPS or Fed X shipment is delayed and all of the overnight fees have to be returned for contractual default. We know that Dole, UPS and Fed X can withstand these types of company disasters, but what about the mid sized business person importing and shipping?
These businesses face mainstream daily risk. Captives are used as a management strategy to control this risk. Does your business face daily risk such as this?
A captive insurance company represents an option for many corporations and groups that want to take financial control and manage risks by underwriting their own insurance rather than paying premiums to third-party insurers.
Captives provide tremendous flexibility for managing risk and great incentive for loss control. One great advantage is the investment that a company gains in their own lost income. It is as if a company is their own wholesaler, reducing operating cost, increasing their coverage and increasing their bargaining power with underwriters. Here are some additional advantages.
►Greater control over claims
►Smaller deductibles for operating units
►Alternatives to costly practice of trading dollars with underwriters in the working layers of risk
►Coverage tailored to meet your needs
►Improved cash flow
The captive market is most known in the jurisdictions of Bermuda, Cayman Islands, Guernsey, Isle of Man, Gibraltar and Turks and Caicos. You can incorporate a captive domestically in some states, most common in the US is Vermont, due to support laws. Your accountant and planner should be involved in choosing the jurisdiction that suits your coverage, tax planning and coordinates with your Asset Protection Plan.
How Do You Start A Captive?
It’s not simple; you cannot do it by yourself. With that said, generally captives involve multiple types of insurance (health insurance included). It is reasonable to assume that you will need $20,000 to start. You prepare documentation similar to incorporation and then you will have to submit them to the Commissions for Banking, Insurance, Securities and Health Care with application fees. There will likely be reviews and meetings. Then there will be a Certificate of Good Standing or something like this depending on the jurisdictional laws and subsequently some type of Certificate of Authority.
Every jurisdiction has their own audit rules and your accountant should be well versed in insurance audits. After this, you will be required to capitalize your specific transaction and negotiate directly with underwriters to get the best coverage and rate. Due to intricacies and complications, captives are not for the inexperienced entrepreneurs.
Enter your phone number and we'll call you fast!
Don't miss this valuable conference and the chance to meet all of our Global Strategic Advisors!
Amsterdam Meeting 2010 7-9 November: Sofitel Amsterdam The Grand
One attitude that cannot be tolerated in medicine is lack of care or apathy and physicians should exercise the same standard of care toward their accumulation of assets, property and wealth.
Written by the foremost expert in the country!
Physicians and their Advisors Will Gain a Practical Guide in the Following Subject Areas
►Asset Protection
►Estate Planning
►Income Tax Reduction
►Financial Planning
►Office Management
►Corporate Structure and Protection Structures
Learn how to protect your personal and business assets from disgruntled patients, creditors and divorce through the use of domestic and offshore planning tools.
Estate Planning - Learn how to avoid the most common estate planning mistakes that could cost your heirs $500,000 - $3,000,000 or more and learn how to avoid the 70-83% tax trap.
Income Tax Reduction - Learn how to reduce your income taxes by $25,000 - $200,000 annually while avoiding the tax avoidance shams in the marketplace.
Financial Planning - Learn how to protect the principal of your investments while still giving yourself the opportunity for upside growth if the stock market performs well.
Office Management - Learn several practical and easy to implement solutions that will help you run a more efficient and financially sound medical practice.
Asset Protection Planning Part 3 concentrates on the protection of personal residence, business acco ...
Would you like to remove a dollar from your company, and even better, a tax deductable dollar and pu ...
Trustmakers Estate Tax planning provides advisor direction and guide information on protecting your estate.
Members of: 
