Insure Hidden Risk
Most businesses unknowingly self-insure a large amount of risk. Many of these are hidden or “below the surface” risks inherent in the operation of a business. With a captive, self-insured risks can be converted into tax-deductible premiums that are paid to a captive. Any materialized risks can now be paid with pre-tax assets. If insurance claims are as projected, the captive will retain substantial profits that can be distributed to its owners.

 

A more comprehensive list of the types of risks you should consider when designing a captive:

  • Key employee loss
  • Key contract loss
  • Key customer loss
  • Currency and economic risks
  • Commercial market policy deductibles
  • Commercial market policy exclusions and exceptions (DIC – difference in conditions)
  • Gaps in commercial market policies
  • Health insurance risks
  • Disability insurance risks
  • Worker’s compensations risks
  • Malpractice liability
  • Professional liability
  • Reputation risks
  • Employer liability (employment practices and others)
  • Cyber and technology risk
  • Any negligence or recklessness based occurrence
  • Any injury claim by employees or 3rd parties
  • Potentially intentional acts causing damage as well
  • Other property and casualty risks
  • Intentional harmful acts
  • Natural disasters
  • Tenant or creditor collection risks
  • Acts of war or terror
  • Business disruption
  • Key ingredient or service supply disruption
  • Mortality and disability, including key man exposure
  • Breach of contracts
  • Unexpected legal complications and fees such as regulatory and adminsitrative actions
  • Performance and service warranties and rework
  • Product function and suitability warranties
  • Deferred compensation risks
  • Career and business disruption risks
  • Other employee benefits
  • Director and officer errors and omissions
  • Deductibles and self-insured retention layers
  • Carrier liability
  • Marine cargo
  • Other inventory risks
  • Warranty and operating performance
  • Litigation risks
  • Any crime risks
  • Bad debt and collection risks
  • Consumer boycott risks
  • Regulatory environment changes
  • Technology obsolescence
  • IT and information security risks
  • Intellectual property risks
  • Business continuity, succession and transfer financing
  • Any other definable uncertain risks

Initial Consultation
The Safe Harbor Group will review your specific potential opportunities with a free initial consultation.


Client Analysis (1 week)
The Safe Harbor Group will make an accurate assessment of your business, your risks, and your asset goals to provide a cost effective and efficient captive benefit plan.


Feasibility Study (2-4 weeks)
A feasibility study will be performed inclusive of an actuarial analysis, financial, and operational evaluation of the proposed captive.


Captive Formation (2-4 months)
The Safe Harbor Group will handle all aspects of forming the captive including:

  • Initial analysis and feasibility study
  • Domicile selection and applications, including business plan and pro forma financial preparation
  • Design and implementation of captive ownership structure
  • Coordinate initial capitalization, including brokerage accounts
  • Maintenance of proper corporate records
  • Underwrite and draft insurance policies
  • Prepare and obtain approval of regulatory filings
  • Payment of regulatory fees
  • Corporate formation; payment of formation fees