Broker Check

Recorded Webinar: Captive Insurance – Tailor Made Risk Management

| May 06, 2020

The current pandemic has made Captive Insurance a very captivating topic recently (pun/dad joke intended). Since this has been such a current topic, we reached out to one of the nation’s leading experts on the topic, Tom Bacharach the Vice President of RMC Group, and asked him to be a guest speaker on one of our recent webinars. You can view or listen to the recorded version of that webinar here.

Part of the reason Captive insurance has been such a hot topic recently is because of a 2018 verdict in which the IRS and Tax Court found a company (Reserve Mechanical Corp), to NOT meet the criteria to be considered an insurance company for federal tax purposes. The primary reason behind this is the fact that the company was insuring the loss of business income due to a pandemic. The IRS and Tax Court essentially found the risk to be so minimal that it did not meet the criteria to be insured. You can read more about that case in one of my previous articles here.

I’m sure it’s surprising that this is not actually the first case in which businesses who have Captive Insurance felt that the IRS and Tax Courts have overstepped their boundaries. This feeling of angst led to the industry infamous lawsuit of CIC Services, LLC v. Internal Revenue Service case. As of May 4th 2020, this case has actually made its way to the Supreme Court.

I’ve included the high-level benefits and eligibility guidelines covering Captive Insurance below. You can read more about Captive Insurance here, but I’d recommend hearing it straight from the experts in our recorded webinar.

Key Benefits:

  • Creates an insurance company to accept some of a business’s risk
  • Keep a significant amount of your current insurance premiums in a company that you own
  • Create a more cost-effective way to cover the need of commercial insurance
  • Gives the business owner the ability to re-invest insurance premiums
  • Creates another estate planning vehicle that offers the same asset protection as a business
  • Enables a business to more effectively manage its insurance risks
  • Gives the business the ability to insure risks that most commercial insurance companies won’t, such as; loss of a key contract, business income protection, regulatory change, key supplier and/or accounts receivable.

General Business Eligibility Guidelines:

  • Generating at least $10,000,000 a year in revenue
  • Currently paying $250,000 a year or more in insurance premiums


If you’d like to determine your eligibility for Captive Insurance you can reach out to my office here, or reach me directly at my contact information listed below to inquire about a feasibility analysis.


Dan Nuwash, MBA

Founder and Managing Partner

Finance For Thought

Direct: 910.546.5463