Captive Insurance

Most accountants and small business owners are unfamiliar with a great way to reduce taxes and expenses. By either creating or sharing "a captive insurance company", substantial tax and cost savings willbenefit the small business owner. Over 80% of Fortune 500 companies take advantage of some kind of captive insurance company arrangement. They set up their own insurance companies to provide coverage when they think outside insurers are charging too much, or coverage is simply unavailable. The parentcompany creates a captive so that it has a self-financing option for buying insurance. The captive then either retains the risk of providing insurance or pays reinsurers (companies that reinsure insurers) to take the risk.