Insurance Captives, What Are They Anyway?

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.

our thoughts on

array(2) { [0]=> string(1) "9" [1]=> string(2) "21" }
Audit BY Adam Goode
Is It Time to Overhaul the Income Statement?
International Tax Update: OECD Releases Latest Edition of Model Tax Convention
Additional Opportunity Zone Regulations Issued
Wayfair Sales and Use Tax Legislation Developments
West Virginia Enacts Special Apportionment Rules for Motor Carriers
SEC Issues Final Ruling to Modernize and Simplify Regulation S-K

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222
p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215
p:614.621.4060     f:614.621.4062