A captive insurance company lets a business insure its own risks through an entity it controls. Done correctly, it manages genuinely uninsured exposures and can be tax-efficient. Done poorly, it is an audit magnet.
The threshold question is risk. There must be real risk, real distribution, and premiums that an independent actuary would recognise. If the only motivation is deduction, the structure will not survive scrutiny.
Operationally, a captive is a real insurance company: policies, claims handling, reserves, capital, and annual filings. We consult on formation and manage the ongoing compliance so the substance matches the paperwork.
If your business carries $500k+ of retained risk that commercial markets price poorly, a captive is worth modelling. If it does not, we will tell you that up front.
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