Captive Insurance Companies

An Opportunity for Closely Held Businesses

Robert E. Bertucelli, CPA, CFP, CLV

The economic crisis of the past few years has caused many closely held businesses to reexamine both their costs and their opportunities to build on their financial success of the past. One such opportunity that has already been seized upon by larger companies—the captive insurance company—is now available to many family-owned enterprises. Although this concept is not new, recent legislative changes have made it more broadly appealing. At a time when expenses are coming under greater scrutiny, the creation of a captive insurance company provides an opportunity not only for current tax planning but also for liquidity and estate planning that will benefit successful business owners and their families.