Captives For Small Businesses

Your small business may benefit from pursuing a captive insurance company. Karen Stern, Partner in Charge of the Entrepreneurial Services Group, discusses what owners should consider before making the "captive" switch in this month's "Financial Fitness," as featured in Small Business Monthly.

Businesses have been utilizing captive insurance companies (or "captives") for decades. In the right setting, a captive provides opportunities for businesses and their owners to take more control over the risk management function, reduce costs and participate in the profits that typically go to the commercial insurance companies.

So what should a small business owner consider when contemplating a stand-alone captive strategy?