Kansas City Captive Insurance
Game Changing Financial Vehicle for Business Owners and CFOs
Since 2005, CIC Services, LLC has helped businesses, business owners and professionals in Kansas City, MO form a Captive Insurance Company (or additional CIC if the business already owns one) to formally insure risks that the business is currently informally self-insuring. This insurance company can be owned by the business, its owner or owners, the owner’s children or other related parties. This game changing financial vehicle will afford the following benefits:
- Improve Overall Risk Management Strategy
- Keep More Of Your Hard Earned Money
- Amass Significant Wealth
- Protect Assets
- Enjoy Favorable Tax Treatment
- Potentially Pass Wealth To Heirs
First things first – a captive insurance company is a powerful risk management tool. This should be the primary reason a business forms a CIC. A successful business can elect to set-up and own its own insurance company, specifically, a captive insurance company. This can be a low risk endeavor because the business can choose to keep existing third party insurance coverage intact and utilize the captive to cover gaps in its existing risk profile.
In the early years of owning a captive, a business can insure risks that third party insurers will not insure or risks where the cost to insure with a third party is prohibitive. These are risks that many businesses regularly face and informally self-insure. Which means that if an event occurs, the business “bites the bullet,” often taking a loss, laying off workers and possibly facing partial or total closure. With a captive in place, businesses can formally insure risks not normally insured by third party insurers.
Adverse events are going to occur whether or not a business has a captive insurance company in place. Businesses with a captive in place have a much larger pool of funds to address adverse events (typically 80% to 100% more) because captive assets are comprised of pre-tax dollars.
When you hear the words “war chest,” you probably don’t think about insurance. However, insurance can also addresses uncertainties and contingencies facing a business. And, if a business goes one step further and sets-up and owns its own insurance company, it is in a unique position to address risks and contingencies while simultaneously expanding its war chest.
Furthermore, captive insurance companies allow owners to customize their insurance coverage. Said another way, policies can be written to perfectly address the businesses identified risks as well as gaps. And, policies can be written without the various exclusions and caveats that are contained in most third party commercial insurance policies.
Because a captive insurance company is owned by the business or related parties, it can craft policies with few or no exclusions. Captive ownership enables business owners, CFOs and risk managers to tailor or customize unique policies for their unique business situation. Furthermore, businesses won’t need to wrestle with their captive over claims.
To learn more about captive insurance, reach out to us by phone or e-mail.