Could captive insurance reduce health care costs and save your business taxes?

Could a captive insurance company reduce health care costs and save your business taxes? A captive generally is wholly owned and controlled by the employer, like forming your own insurance company. You can customize coverage and charge premiums that more accurately reflect your loss exposure. And you can participate in the captive’s underwriting profits and investment income. Premiums paid to the captive are tax-deductible, and the captive can deduct most of its loss reserves. Contact us to learn more about the tax treatment and other pros and cons.