Captive Insurance 101
A "captive insurance company" is a property and casualty insurance company specifically established to insure the risks of an associated business. Owning your own "captive" 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 captives, these risks can be written right into the policy, free of vague or ambiguous language. Under IRC 831(b), middle market organizations can take advantage of both the primary benefits of captives, including tailor-made risk coverages and secondary benefits, such as improved tax planning. Capstone is the leading alternative risk planning company for the mid-market and we’re continuing our CAP_YEARS_NUMBER-year trend of growth and leadership in the industry. While other captive managers disclaim tax and legal services, we offer a comprehensive alternative risk financing program in collaboration with The Feldman Law Firm LLP. We invite you to explore all the benefits of forming captives and the turnkey services we provide.
Learn more about forming Captives >>.
Our Latest Blog
- The American healthcare system is, by anyone’s standards, in a state of flux. “Repeal and replace” is still the mantra among most Republican leaders, as they seek an alternative to former President Obama’s Affordable Care Act (ACA). Even as talks…
Capstone Expands Into the Midwest with New Talent
January 3, 2017 (Houston, TX) – Capstone welcomes Steven Lonergan, CPCU to its team as Director of Business Development - Midwest. Lonergan brings over 30 years of insurance, reinsurance, and captive experience to Capstone.
Lonergan is based in the greater Minneapolis area, expanding Capstone's local presence into the Midwestern markets. “We’re excited to have Steven on board to assist clients on captive insurance / alternative risk planning opportunities,” commented Capstone’s CEO, Stewart A. Feldman. “Steven brings a wealth of captive insurance knowledge to our company, bolstering our talent pool. Capstone will continue to hire the industry’s best professionals to spearhead our turnkey captive programs.” Read more.
Jeff Simpson/Gordon, Fournaris Client Suffers $4 Million Defeat
November 11, 2015 (Wilmington, DE) - PoolRe Insurance Corp. and others announce the settlement of a long-running case against Organizational Strategies, Inc., a defense contractor based in Virginia. The settlement, concluded in the last few days, paid in excess of $2.2 million to PoolRe and others by OSI and its owners, Nicolette and William Hendricks.
Captives in the IRS' Dirty Dozen List of Abusive Tax Schemes? Get the Facts
In the first quarter of each year, the IRS increases the volume of its press releases in a thoughtfully designed program to spur taxpayer compliance with our income tax system. This is a well-reasoned effort by the IRS.
Gallagher Captive Manager Artex discloses it's subject to IRS probe
Artex Risk Solutions Inc., the Bermuda-based captive management subsidiary of insurance broker Arthur J. Gallagher & Co., has confirmed that it is involved in an Internal Revenue Service probe into captive insurers formed under 831(b) of the Internal Revenue Code.
September 10, 2014 Federal Court Opinion Ordering Artex's Compliance with IRS Subpoena
The Internal Revenue Service (IRS) is conducting an investigation of Respondent Artex Risk Solutions, Inc. (Artex). The IRS is allegedly
examining Artex’s role in transactions involving captive insurance plans under 26 U.S.C. § 831, and investigating whether such transactions constitute abusive transactions.
Artex Docket Report
Petition to enforce IRS summons filed by United States of America (Shoemaker, Martin) (Entered: 06/03/2014).
In this Q&A session, Lance McNeel, CPCU, ARM explains how businesses in the oil & gas sector can mitigate financial risks by forming a captive insurance company. Lance highlights the biggest risks facing oil & gas businesses today—and how to recover from losses. See the interview >>