Captive Insurance Tips & Articles

As Ohio joins 30 other states in approving the formation and management of captive insurance companies, experts are advising middle market business owners to tread carefully. New legislation was signed into law last week by Ohio Governor, John Kasich allowing businesses in the state to form captive insurance companies to provide for their own commercial…

The founding of captive insurance companies is a shrewd business decision, as it can protect assets and help to increase profits. Captive insurance companies constitute a wise choice as a risk management solution and risk financing alternative for numerous reasons. This option lets you simultaneously minimize the cost of business insurance, improve your cash flow,…

There has been a lot of "buzz" in the marketplace about captive insurance lately. A lot of confusion accompanies the talk since understanding what captive insurance companies are, how they work and who they work for can be a little complicated. Understanding Captive Insurance Companies It is not something new, nor is it particularly aggressive.…

Size does matter. As a business expands, so can its exposure to risk. The size of your captive insurance company (as measured by premium levels) should adequately reflect the growth and related risk exposure of your business. Capstone Associated Services specializes in providing customized captive insurance planning solutions for closely held businesses. The size and…

Over the last few months, we have had numerous discussions with various clients regarding the expanding scope of their business since their first involvement with captive planning (many of our clients have captives in place dating back to 1998). In this context, we have discovered that the existing alternative risk planning is significantly under-served by their current…

Captive insurance companies are those which are founded for the purpose of financing risks which flow out from their parent groups, which may in some cases also include insuring risks associated with the parent groups’ customers. The use of captive insurance companies is a risk management strategy that a business uses as the basis of…

Why are more and more middle-market companies forming their own captive insurance companies, even in this uncertain economic environment? Here are two of the top commercial insurers' shortcomings echoed by our clients: Commercial Insurers' Frequent Denial of Claims Conventional insurers enjoy a well-earned notorious reputation for not paying claims.  Our clients tell us they are looking for…

Rather than covering all property & casualty risks through a conventional P&C insurer, like Liberty Mutual, alternative risk planning identifies those insurable risks which are appropriate for different treatment. Strategy:Alternative Risk Planning for closely held businesses using Captive Insurance (essentially a private-label property & casualty insurance company) Service Provider:Capstone Associated Services, Ltd. Capstone has formed…

One excellent use of a property and casualty captive insurance company for one of our clients has been to underwrite a larger deductible on employee health insurance. This has proven to be a win-win for both the employee and the employer in terms of reducing health insurance costs. Background With encouragement from the federal government, health…

Delaware has long enjoyed a reputation as the premier U.S. domicile for corporate formations. Today over 900,000 companies representing 63% of the Fortune 500 and 50% of companies traded on the NYSE and NASDAQ are incorporated in Delaware. In 2005, Delaware enacted legislation modernizing state law regarding the formation of captives and positioning Delaware as…