March 2, 2021 | 00:29:15 | E21
Jeff Krommendyk, Mike Miller, the experts, interview Rich Ericson from ALINK and Nathan Merrill with Goodspeed and Merrill to learn how to set up an insurance policy that covers risks not covered by traditional business insurance. Plus, the tax advantages can be huge. The perils of a pandemic can be covered by captive insurance, and that could have provided companies a lot of protection. Learn how a business owner can set up a captive insurance company of their own. Learn about the benefits. Learn about the tax benefits. Learn about the two fundamentals required by any insurance company. Learn about pooling risk with a group captive, series captives, single parent captives. Learn about sections of the IRS code, including 831a and 831b. Learn about low-frequency, high-severity risks we all face, and how we can form a company specifically to cover these risks. And, if the risks never occur, how the owners of the captive company can still get access to the premiums paid to cover that risks. Some of the risks include coverage for a pandemic, loss of business income, supply chain interruption, bed bug coverage, earthquake coverage, loss of a license, key account loss, accounts receivable losses, and cyber security threats. Most companies do not want to pay premiums for insurance. But if the business owner was a recipient of these premiums, by owning a captive insurance company, then what was informally insured before might become a profitable endeavor instead. Learn about how the IRS tax code is an incentive system, and how it gives tacit approval to an insurance company, like this. Many business owners want to know the maximum tax-deductible contributions to captive insurance companies. Learn about the companies that benefit most from this planning idea: how much in revenues, how many employees, in what industries, and more.