A “sunk cost” is typically defined as money that once spent is never recovered. If you paint your house and decide you hate the color, you can paint over it with a color you like. Nevertheless, the cost for the old paint was a “sunk cost.” In many ways, commercial insurance is a “sunk cost.” Aside from More
Insurance is like a parachute. If it’s not there when you need it, you probably won’t ever need it again.
This is particularly true for many small and mid-market businesses. Unlike large corporations that can usually weather disaster, small and mid-market companies are often one disaster away from extinction. More
The Captive Insurance Companies Association (CICA) recently released Commercial Insurance and Captive Insurance Industry: Commonly Accepted Practices. CICA is the world’s largest domicile-neutral captive insurance association. This guidance from CICA for captive managers and service providers focuses largely on risk pools More
As a business grows and matures, its owners may look for additional means to grow revenue, boost profits and accumulate wealth. Vertical integration is a common approach and includes forming or acquiring a second business that serves the core business. Vertical integration works because the supplier or service provider is already making a profit serving the core business.
As an example, a manufacturer may choose to purchase or start a business More