Most business owners 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.
Insured Risk:
- Auto
- General Liability
- Medical Malpractice
- Property
- Workers’ Compensation
Self-Insured Risk:
- A/R Concentration
- Business Interruption
- Construction Defect
- Credit Default
- D & O / E & O
- Deductibles
- Disability
- Earthquake/Hurricane
- Employment Practices
- Exclusions
- Litigation Defense
- Mold and Pollution
- Operating Risks
- Product Warranty