Captive Insurance
Known as the premier risk-management and business-planning tool for businesses and their owners, a “Captive” is an insurance company formed by a business owner to insure the risks of the operating business. The operating business pays premiums to the Captive, and the Captive insures the risks of the operating business.
For small to medium sized companies, the key benefits of a Captive include a tax deduction of up to $1,200,000 per year for property & casualty insurance premiums, which is specifically permitted by the Internal Revenue Code 831(b).
Advantages of Captive Insurance
Regardless of corporate size, other advantages of a Captive Insurance include:
- Minimizing Insurance Costs
- Ability to Control Risk
- Insuring Hidden Risk
- Wealth Accumulation
- Improving Cash Flow
For more information about the benefits of Captive Insurance for small to medium sized organizations, click here.
For more in-depth information about Captives and their benefits for corporations of all sizes, click here.
Disclaimer: P3 Global, LLC does not provide tax or legal advice. All decisions regarding the tax or legal implications of your investments should be made in connection with your independent tax or legal advisor.