Surgical Captive Benefits
Innovative Risk Management Through Captive Insurance
What are the Advantages of a Captive Insurance Company?
Captive Insurance Companies are often overlooked as a strategic initiative
by finance and tax professionals, as the benefits are not easily understood
or explained. With the proper guidance from Surgical Captive, the economic
advantages of a Captive program become readily apparent. Such benefits include:
Ownership and Control Captive Insurance Companies are completely controlled by their owners,
including all stock, investments, and bank accounts.
Asset Protection By forming a Captive Insurance Company, business owners are protected
against risk from creditors, business debts, attorneys, and litigation.
Insurance Coverage Flexibility Captive Insurance Companies can obtain insurance coverage for operating
risks not routinely covered by traditional insurance policies. By liberating
businesses from fluctuating market cycles of commercial insurance companies,
Captives provide better availability, stability, and affordability on
a range of commercial coverages.
Reduced Insurance Costs Savings resulting from insurance cost reductions and profits routinely
earned by third-party insurers are controlled by the Captive. Captive
Insurance Companies have the flexibility to adapt to changes in the pricing
structure of the commercial insurance market and in the company’s
business, risk tolerance, and cash flow.
Favorable Tax Treatment IRS Safe Harbor Rules permit the Captive to receive a certain amount of
annual insurance premiums income tax free. Tax savings start immediately
and there are no restrictions regarding the amount of time the Captive
Insurance Company is in operation.
Improved Cash Flow With a Captive, the business can retain insurance premium dollars and
profits within the business enterprise, thereby increasing investment
income on its unpaid loss reserves, capital, and surplus. Control over
losses also improves by providing owners with the resources to categorize,
measure, and manage these costs while maintaining accurate financial projections.
Wealth Accumulation & Preservation Profits from premiums paid are retained by the Captive for reinvestment
or disbursement. As your partner, Surgical Captive will administer service
and management fees, dividends, and liquidation. Surgical Captive will
assist you to preserve the wealth your Captive has earned. Typical investments
include mutual funds, stocks, bonds, and highly liquid marketable securities.
Learn more about the exciting benefits afforded by Captive Insurance!
Call Surgical Captive today.