Captive Insurance Company

[Traineminaclass]

Anyone heard of these? 831(b) is the code section.

They allow business-owners to self-insure.

Opinions?

 

[cottonland]

If premium is not over $1m, you're wasting your time. Very expensive to set up. You might look for a rental arrangement. The board meetings in bermuda are nice though!!!!

 

[arennick]

Many middle-market companies are now using captive insurance companies as part of their enterprise risk management programs. Improvements to various states' captive statutes and advances in series structures have made captives much more affordable lately. My law practice focuses on forming captives, primarily in Delaware most of whom qualify under 831(b). I would be happy to answer any questions in this thread or via email - [email protected]

 

[rwsierk]

Captives are a great solution for the right business. I do agree it takes a larger premium in order for it to make sense. $1mm is a good target. With the rising cost of health and workers compensation insurance, this is now easy for a mid-market company to reach. I found a great site captiveinsurance101 (dot) com it is not a promotion for a specific company and gives good unbiased information.