Whether you perceive it as a good thing or a bad thing there has been a lot of muddy water on just exactly what is contained within the 2,000+ pages of legislation so hopefully this overview will help clear up any of the murkiness around the coming changes within the next few years. Emotions and personal feelings aside it’s a “just the facts ma’am” perspective.
This comes from a newsletter put out by one of our partnering organizations, The Taft Companies, who we work with when we have agribusinesses we are working with who would benefit from the use of a captive insurance company. What are the top five reasons to consider a captive insurance company?
- Reduce traditional insurance costs
- Provide coverage’s not otherwise available
- Capture underwriting profits and investment income from paid-in premium
- Benefit from actual loss experience versus industry wide and/or underwriter’s perception of potential for adverse loss experience
- Great estate planning vehicle
Not all agribusinesses would qualify for one of these creative financial vehicles but if your gross operating income is large enough, you may want to look into it as an option. If you have any questions or would like a no-obligation consultation, just get in contact with me and we’ll talk.
Jon Stone Goff
