If you are ready to explore the risk management and tax advantages of a captive insurance company, then CRI is here to guide you. Contact us today!
The following factors led our team to determine that a captive insurance company was a good fit for this client’s situation:
Sustained profits. With administrative fees that start around $70,000, a captive insurance company is generally feasible for companies with a net income of at least $1 million.
Sufficient premiums. Ideally, captive insurance companies have at least $500,000 in annual premiums.
The right motivation. Given the tax advantages of captive insurance companies, the IRS scrutinizes these structures closely. The client was approaching the decision with the right business motivation: a desire to shift risks in a financially prudent way.
Expected growth. Captive insurance companies typically work well in businesses that expect to grow within the next few years.
Large number of employees. In many cases, captives work well for putting some existing employee benefits insurance coverages in the captive.