713-800-0550

Captive Insurance For Businesses

If you’re working in a high-risk industry, chances are you have a basic level of business insurance in place—for many industries, it’s the law. But there still may be risks inside your business that remain uncovered. Uninsured industry-specific risk exposures can ultimately lead to high out-of-pocket costs if a loss event were to occur. Businesses can certainly opt for commercially-available “specialty” coverages to address these risks, but often, they are too expensive for the average mid-market business owner. Compounding the issue, specialty coverages may not be readily available, which forces business owners to foot the bill. Commercial coverages also carry exclusions, or “gaps” in coverage, leaving the business financially and operationally vulnerable. Additionally, many commercial insurers have a profit-driven motive to deny claims.

Forming a captive insurance company can help combat industry-specific risks and fill gaps in coverage. A “captive” is an insurance company that’s been formed to insure the risks of an affiliated business. Captives formed under Section 831(b) of the Internal Revenue Code may also promote financial efficiency within your business via tax-advantaged premiums, dividends, and secured loans.

Watch the video below on determining whether a captive makes sense for your business:

Business owners in the mid-market who start an insurance company are able to fund losses and have more control over the claims process. Captive planning also gives business owners another source of investment income, when no claims are made within a given calendar year.

Bottom line: Each industry comes with its own set of unique risk exposures. Being proactive in risk management ensures that business owners remain resilient in the face of risk.

How Are Captives Working in Your Industry?

Capstone Associated Services, Ltd. is an award-winning captive management company working with mid-market businesses to cover uninsured risks encourage better financial planning. Capstone has worked with hundreds of businesses across an array of industries since 1998.

We understand that one industry may differ from the next in terms of their risk funding needs. For example, the manufacturing industry is utilizing the integration of web-based technology with machines, known as The Internet of Things. As such, the manufacturing industry is currently facing unique cyber exposures. By contrast, healthcare industry risks are slightly different—healthcare providers are facing risks stemming from regulatory changes and breach of privacy. No matter what industry you’re in, captive insurance for businesses as a supplemental risk funding strategy ensures that business owners can pay for losses, even when your commercial policy falls short. Malpractice, machinery malfunction, loss of key employees, business interruption, and many other industry-specific coverages can be written right into the policy.

Capstone works with a number of industries, including:

• Agriculture
• Trucking
• Construction
• Healthcare
• Manufacturing
• Hospitality
• Commercial Real Estate
• Self-Storage
• Energy
• Retail
• Self-Insured Employers
• Industrial Services
• Wholesaler/Distribution
• And many others

More About Capstone Associated Services, Ltd.

Capstone Associated Services, Ltd. is a captive insurance planning company providing comprehensive insurance management services and accounting for captive insurance companies. It is the most comprehensive captive insurance planning available. Capstone is a standout in the industry with over 25 years in operation. Unlike most other captive managers, the team has the expertise to design, implement, and manage your captive company and provide full support. Capstone's staff of insurance professionals includes CPCUs (Chartered Property & Casualty Underwriters), claims specialists, accountants and administrators.

Capstone has successfully formed over 200, offering an award-winning, attorney-led captive insurance planning program that is unmatched in the industry. Capstone also collaborates with CPAs and other financial advisors on captive planning for their clients.

For a free consultation, call us at 713.800.0550 or fill out our contact form. We’re looking forward to connecting with you.

 

    First Name*

    Last Name*

    Organization*

    Website*

    Phone*

    Email*

    Your Message: