Sanford Captive Insurance
If your mid-sized to large company has a risk that it needs to manage, but a traditional insurance company’s premiums to cover that risk are high, you may want to consider captive insurance. Companies that don’t want to pay the higher premiums of traditional insurance have an alternative. By wisely managing their resources and creating their own captive insurance company, high premium expenses and claims can be controlled. The profits that are generated by managing your risks will remain in your captive. These profits can even be tax free, under the right circumstances.
Benefits of Captive Insurance
- Tax deduction for the parent company for the insurance premium paid to the captive;
- Various other tax savings opportunities, including gift and estate tax savings for the shareholders, and income tax savings for both the captive and the parent;
- Opportunity to accumulate wealth in a tax-favored vehicle;
- Distributions to captive owners at favorable income tax rates;
- Asset protection from the claims of business and personal creditors;
- Reduction in the amount of insurance premiums presently paid by the operating company;
- Access to the lower-cost reinsurance market; and
- Insuring risks that would otherwise be uninsurable.
Keep Costs Low
The most obvious benefit is that you will no longer be paying premiums to another insurance company. Instead, you will pay them to your own captive. You will retain control over the profits of the captive and control the distribution of those profits. Good management of your company’s risks will result in low loss experience, which will keep the premiums low.
Personally Handle Claims
Sanford Insurance can also manage your captive’s claims. When your insurance is handled by a traditional insurance company, the claims process operates on their timeline at their speed and discretion. Sanford’s experienced claims managers will keep your claims costs to an absolute minimum.
Much like the claims situation, when your insurance is written through a traditional insurer, the management and structure of your coverage is out of your hands. Depending on the risks you’re attempting to cover, traditional insurers may not provide you with sensible options that match your needs. Sanford will create policies to be issued by your captive that are tailored to your needs.
Why Choose Sanford?
Sanford Insurance has years of experience in the captive insurance industry. If your company is interested in developing its own captive, we can help. Sanford can help you get started by picking the domicile that is most appropriate for you. We will help you acquire the proper license. Through our depth of knowledge and experience with captives, we can provide your company with policy administration and write the necessary policies.
Once your captive is set up, we can provide management for the captive and guidance in selecting actuaries and auditors. Because captive insurance means you’re self-insured, Sanford can also provide you with valuable third-party administrator services. We can manage and handle your claims to make sure that you and your employees are protected.