Captive Insurance 101

A "captive" is an insurance company specifically established to insure the risks of an organization. Owning your own insurance company comes with advantages that help you gain better control over your business’s risk management, earnings, and tax planning. Conventional insurance policies often limit or exclude coverage for certain inherent operational risks.

With captive insurance, these risks can be written right into the policy, free of vague or ambiguous language.  Capstone is the leader in captive management planning for the mid-market and we’re continuing our 15 year trend of growth and leadership in the industry. We invite you to explore all the benefits of captive insurance and the turnkey services we provide. Learn more>>.

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Featured Linkedin Discussions on Captive InsuranceMarsh Releases 2014 Captive Benchmarking Report

Lance McNeel - Capstone Associated Captive Insurance Manager Lance McNeel, CPCU, ARM Vice President - Business Development at Capstone Associated Services, Ltd
The big story this year is that only 37% of US companies with captives actually achieve insurance company tax status and deduct premiums paid to the captive. This should come as no surprise since the primary motive for forming a captive should be to support the risk management strategy of the affiliated insureds. Also, the significant number of not-for-profit owners and special purpose vehicles included in the study further explains the low percentage. Marsh also continues to discuss the trend toward greater numbers of small captives that file under section 831(b) of the Internal Revenue Code. "This type of captive represents the most common new captive formations in the US over the last five years and has led to the significant growth of domiciles like Utah, Kentucky, Montana, and Delaware. Offshore, there are also small captives that choose to make the election of being treated as an insurance company for US tax purposes."

Captive Manager on LinkedIn

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