Real Estate Captive Insurance Services
Many organizations have risks that are not covered by traditional insurance policies, such as deductibles and environmental liabilities. Insuring these risks can be expensive, and coverage can often be difficult to obtain. A captive insurance company is an option that will cover those self-insured liabilities, and in most cases, provide your company with additional tax benefits. You may be able to set one up for your business to formalize a program of self insurance for risks that are very difficult or expensive to obtain in the traditional insurance markets. A captive can help you manage your risks and save money.
Brown Smith Wallace offers its clients a unique service and resource -- captive insurance company analysis and formation. Our team members have significant, hands-on experience in forming captives, so our advice is grounded in practical insights on implementation and how to maximize the return on investment (ROI) on these entities. We have expertise in on-shore, off-shore and 831- B captive companies.
There are many benefits to forming a captive, including:
- You keep the profits from the premiums
Forming a captive insurance company allows your business to pay itself to insure risks. Otherwise, you would be paying an insurance company to do this for you. Why not keep these funds for your business?
- You could save money
Captives allow you to insure only your company’s risk. Why pay higher premiums to cover the losses of other companies? In addition, while each situation is different, most small to mid-sized captives can save your company $200,000 to $400,000 each year.
- You can save on taxes
You can receive a tax deduction for your captive premium payments. If the total premium payments to the captive are less than $1.2 million, your business may not have to pay tax on the underwriting profits.
- Estate planning benefits
Captives can be passed along to successors tax-free, making them a great strategy for family-owned businesses.
Learn more and determine if forming a captive insurance company is right for your organization.
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