Mitigate and Manage risk while Cultivating, Richer Returns, Leverage Liquidity and Maximize Tax Benefits

WHAT IS CAPTIVE INSURANCE?

Captive insurance is a form of insurance whereby a company owns its own insurance company and pools the insurance risk with other businesses. Captive insurance is utilized by small businesses, non-profit organizations, and an estimated 90% of Fortune 500 companies.

WHY CONSIDER CAPTIVE INSURANCE?

A captive insurance company provides several advantages and addresses several pain points for you and your business.

Insurance Benefits

Your captive insurance company can be structured to suit your company’s specific needs in ways that can: lower overall insurance costs, tailor coverages, and provide coverages that may not exist in the commercial market.

Premium Capture

You keep the premiums you pay into the captive net of claims and losses (captive and pool).

Tax Saving & Benefits

Your captive insurance company can oﬀer very significant tax benefits and savings for you and your business.

Financing Benefits

Your business can lower its borrowing and financing costs and hassles by lending itself money out of your captive insurance company.

Empowering You
with
Customized
Captive
Insurance

3F Insurance Group: Empowering You with Customized Captive Insurance

Your business faces unique challenges in today’s complex environment, particularly in managing and controlling risk. 3F Insurance Group offers specialized captive insurance solutions designed to empower you and your business.

Our approach is to provide you with captive insurance that transforms how you handle risk and insurance. Allowing you to maximize the benefits of owning your own captive insurance company and reaping the benefits.

Benefits of Captive Insurance for Small Businesses

Customized Coverage: One size does not fit all in the insurance world. Your captive allows for tailored policies that meet the specific needs of your business, covering risks that traditional insurance may not.

Any premiums, net of claims and costs, are retained by your captive insurance company, not a third-party insurance company. Because you own the insurance company, you control how much and what coverage you purchase in any given year.

2. Enhanced Risk Management: Owning a captive insurance company
encourages businesses to adopt a more proactive approach to risk
management, leading to a safer and more efficient operation. You and
your company capture the economic benefit of reduced insurance claims.

Improved Cash Flow: Captive insurance can enhance your business’s cash flow by allowing you to retain underwriting profits and investment income that would typically go to an external insurer.

Tax Benefits: Captive insurance companies offer meaningful tax advantages, making them a financially attractive option for many small and medium-sized businesses.

Financing Benefits: Your captive insurance company retains the premiums paid into the company, net of any claims and losses, which are then invested in low-risk stocks, bonds, and mutual funds.

As those retained premiums grow, your captive insurance company can make loans to your parent company. The interest payments are deductible costs for the parent company, which typically has a higher tax rate, and interest income for your captive insurance company, which will typically
have a lower tax rate.

Succession Planning: The captive insurance company can also pay dividends to you or your beneficiaries as its retained premium base grows

PAGA

In California, the Labor Code Private Attorneys General Act (PAGA) poses a significant risk for companies due to its authorization for employees to file lawsuits for Labor Code violations. Captive insurance can be an effective tool for companies to manage this risk.

By creating a Captive insurance program specifically tailored to cover potential liabilities under PAGA, companies can set aside pre-tax funds dedicated to addressing these unique legal exposures. This use of a Captive can provide financial protection against PAGA-related lawsuits as well as lawsuits of many other kinds.

Our Approach: Partnership and Expertise

At 3F Captive Services, we don’t sell insurance; we partner with you. We work closely with you to understand your unique needs and challenges. We then design and manage a captive insurance program that you own that aligns with your business goals and risk profile.

Implementation and Management

Setting up a captive insurance company can seem daunting, but with 3F Captive Services, it’s a smooth and guided process. We handle and arrange for setup, management, and compliance complexities, allowing you, the business owner, to focus on what you do best — running your business.

Why Choose 3F Captive Services?

• Tailored Solutions: We believe in solutions that are as unique as your business.
• Expert Team: Our team brings a wealth of experience in insurance, finance, and risk management.
• Commitment to Service: Our Clients depend on our responsive and personalized service.
• Proven Track Record: We have a history of helping businesses thrive through effective risk management.

Ready to Take Control of Your Business Insurance?

Choosing Captive insurance is a strategic decision that can enhance the success and stability of your business. With 3F Captive Services, you’re choosing a partner who understands the needs of small to medium-sized businesses and is committed to providing solutions that fit you.

Contact Us Today - (775) 473-1956

Ready to explore how Captive insurance can benefit your small business? Contact us for a consultation, and let’s start the journey towards more intelligent, efficient insurance management.