OUR THOUGHTS ON:

Insurance Captives, What Are They Anyway?

Audit|Tax

By John Popies

A captive insurance company is a legally licensed limited-purpose property and casualty insurance company whose main purpose is to insure the risks of its owners or the companies affiliated with its owners.  Some common types of insurance captives include, but are not limited to, builder’s risk, contractor’s professional liability, directors’ and officers’ liability, cyber security, automobile liability, general and umbrella, and workers’ compensation.

Some common benefits of captives include improved risk management, insurance cost reductions, mitigation of insurance coverage gaps, and tax and estate planning opportunities.

When deciding whether or not to form or participate in an insurance captive, there are numerous items to consider in addition to what will be insured, such as single member vs. group member captive, state or country of domicile for the captive, manager of the captive and broker.

For more information regarding insurance captives, contact your Schneider Downs representative and stay tuned for more Schneider Downs articles.

© 2014 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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