Surgical Captive

Captive Insurance Companies

Captive Insurance Structure

What Is the Benefit of Captive Insurance?

Business owners form Captive Insurance Companies to protect themselves from the risks associated with business ownership. Rather than paying insurance premiums for a policy to third-party insurers, premiums are paid to the Captive. Pre-defined risks are underwritten with the assistance of a third-party actuarial team. Any reserves realized from unpaid claims remain an asset of the Captive. These assets are protected from creditors and remain available for investment or disbursement.

Surgical Captive

Learn more about Captive Insurance Companies on the following pages:

What Is Uninsured Risk?

Uninsured risk is risk that is not covered by traditional insurance; essentially, they are losses related to the operations of the business. Captive Insurance Companies provide flexibility and the opportunity for business owners to customize their coverage to suit their needs, affording greater risk management control.

Surgical Captive

Favorable Tax Treatment

831(b) of the Internal Revenue Service (IRS) Code permits the Captive to receive a certain amount of annual insurance premiums completely income tax free. Tax savings start immediately and allow for flexible participation. Annual insurance premiums paid to the Captive are fully deductible by the payer as “ordinary and reasonable business expenses,” pursuant to Internal Revenue Code (IRC) Section 162(a). The business owner decides when, how much, and for how long the existing businesses will pay premiums to the Captive. There are no restrictions regarding the amount of time the Captive is in operation.

As part of a Surgical Captive Feasibility Study, we analyze which of the three IRS Safe Harbor Rules best suits your business:

  • Single Parent Captive (Rev Rul 2002-89)
  • Multiple Subsidiaries (Rev Rul 2002-90)
  • Group Captive (Rev Rule 2002-90)

Learn more: Contact Surgical Captive today to set up a consultation.

Explore the Benefits Of Captive Insurance

Avoid The Risk.

Contact Us Today For More Information on Captive Insurance

Submit Information