Audit Alert: Why Business Owners Shouldn’t Be Spooked by Captive Insurance

“For businesses that have utilized a form of self-insurance known as captive insurance, there might be added nerves, especially with some of the recent commentators making misleading, blanket statements that captives are essentially nothing more than abusive tax shelters perpetrated only by bad actors.

The truth is that captive insurance has been a tried, true, and perfectly legal form of self-insurance for over three decades, signed into law by Congress in the 1980s, and expanded and encouraged by Congress as recently as the Obama administration.

In many cases, this is a win-win, especially for small businesses who are exposed to risks not normally covered by commercial insurance and that don’t have the resources of big corporations to mitigate those risks.”

→ Read the full article at Kiplinger to separate the truths from the misconceptions about private and captive insurance.