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Help Safeguard Your Success, One Premium at a Time

Most business owners need a few different types of insurance: liability, property, medical. Depending on your industry, you might have upwards of a dozen different kinds to insure equipment, losses from cyberattacks and more.

Even those who have taken the appropriate preventative steps might lack complete confidence.

Business Owners Still Must Deal With:

These can make forecasting fixed costs a near impossibility.

Standard third-party insurance policies generally won’t reflect your business’ true risk profile.

Insurance costs typically increase, either in deductibles, out-of-pocket payments or premiums. These eat away at your margins.

These can make forecasting fixed costs a near impossibility.

Standard third-party insurance policies generally won’t reflect your business’ true risk profile.

Insurance costs typically increase, either in deductibles, out-of-pocket payments or premiums. These eat away at your margins.

Captive Insurance Presents An Attractive Alternative

This little-known option gives you greater control of a necessary overhead expense in the following ways:

Potential investing and tax advantages

Depending on the Captive type, premium payments may be tax deductible and unused premiums can grow in value to be used for other business goals.

Reduced costs

You are able to self-fund your own insurance rather than pay a third party. Additionally, your premiums are rooted in actuarial analysis for your business, rather than being pooled with the general population.

Stabilizing premiums

By nature, Captive structures are generally more consistent, meaning associated premiums aren’t as prone to wild, market-driven volatility.

More say in claims

When you self-insure, you reduce the back-and-forth typically involved when filing a claim. An additional benefit? Claims that end up in your favor, more often than not.

What We Do For Business Owners

If you don’t have a Captive already , we can do everything from start to finish, including initial feasibility studies and performance monitoring. If you have an existing Captive, we can provide an objective perspective to make suggested enhancements.

Your Captive must be properly structured to receive associated tax benefits. We will help with the structuring and management of your Captive so that it is IRS compliant and follows regulations.

Captives aren’t just about cutting costs — they present an opportunity to be more strategic about managing risk. We help develop a comprehensive framework that aligns with your operational realities.

If you don’t have a Captive already , we can do everything from start to finish, including initial feasibility studies and performance monitoring. If you have an existing Captive, we can provide an objective perspective to make suggested enhancements.

Your Captive must be properly structured to receive associated tax benefits. We will help with the structuring and management of your Captive so that it is IRS compliant and follows regulations.

Captives aren’t just about cutting costs — they present an opportunity to be more strategic about managing risk. We help develop a comprehensive framework that aligns with your operational realities.

You Might Be Wondering…

This completely depends on your situation, as multiple factors, such as reserve requirements, domicile location, and formation fees (to name a few), must be considered. We have experience managing Captives from various locations, including off-shore and on-shore domiciles.

Possibly. The most suitable candidates are those with predictable risk, sizeable revenue of at least $20MM and a desire to have greater control. We can give a more definitive answer if you tell us more about your company.

Captives should complement your broader risk management initiatives. We will help ensure your Captive aligns appropriately with your existing policies and claims handling procedures.

Reinsurance allows you to transfer excess risk to external insurers while helping you manage large claims more efficiently. You gain control and avoid potentially catastrophic losses in the process.

You need to measure against criteria other than money saved or dividends received. You also need to account for claims ratios, operational efficiency and more. We provide transparent reporting and guidance so your Captive can provide noticeable value.

Wells Fargo Advisors does not provide tax or legal advice.
  
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