New York Captive Insurance
Game Changing Financial Vehicle for Business Owners and CFOs
Since 2005, CIC Services, LLC has helped clients in New York discover their own game changing financial vehicle. This discovery is the financial advantages afforded to business owners and professionals derived from owning their own insurance company.
All risk is financial.
An insurance company is a powerful financial vehicle that can provide tremendous added value to businesses and business owners. CIC Services LLC helps clients set-up, own and operate their own insurance company – known as a captive insurance company.
First and foremost, a captive insurance company can provide more effective risk management and casualty insurance protection to a parent company or companies.
Owning a captive insurance company can enable business owners to more effectively address the following wants and needs:
- Reduce insurance costs
- Improve risk management and insurance protection
- Experience tax savings
- Improve asset protection
- Accelerate wealth accumulation
- Facilitate estate transfer to future generations
- Provide an alternative to non-qualified retirement or deferred compensation plan
- Provide golden handcuffs or golden parachutes
- Facilitate buy-sell, buy-inn, or buy-out arrangements
- Provide an alternative to qualified retirement plans
What Is A Captive Insurance Company?
A captive is a unique but REAL casualty insurance company. It includes its own corporation, insurance license, reserves, policies, policyholders, and claims. It is a formal way for business owners to self-insure, and captives are generally formed to insure the risks of owners and related or affiliated third parties.
There are many risks that all businesses regularly face and informally self-insure. It’s worth noting that businesses informally self-insure with after tax dollars, meaning that a businesses’ “rainy day fund” is usually comprised of retained earnings that have already been taxed. With a captive in place, businesses can formally insure risks not normally insured by third party insurers.