When conventional insurance won't work
a micro-captive insurance company could help.
Micro-captive insurance companies are small, privately owned insurance companies formed by an organization to cover risks that may be too expensive or impossible to cover with conventional insurance. Owned by the same individuals who own the operating company, the micro-captive is a separate entity that is paid (tax-deductible) annual premiums of up to $2.3 million from the operating company to cover its business risks.
Companies with uninsured risks such as high deductibles, policy exclusions, product recall, product warranty, litigation, environmental or loss of key suppliers and customers
Companies with significant and stable cash flow (typically annual taxable income of $1 million or more and gross revenues of $10 million or more)
Closely held, privately owned businesses
Mitigate risks for which insurance is too expensive or not available
Help protect assets from business creditors and litigation claims
Potential for tax savings and wealth transfer
Flexibility in management of investments and distributions create opportunities for favorable tax treatment to the owner(s) of the micro-captive.
AGH’s professionals can help companies understand when micro-captives can be beneficial, what the risks and opportunities are, and walk owners and executives through the process of creating and administering a micro-captive.
Joyce Moellinger manages the firm’s micro-captive insurance company consulting team and handles the oil and gas practice as well as serving other corporate clients’ tax needs.
A business administration and accounting graduate of Wichita State University, Joyce is a certified public accountant with more than 25 years of both public accounting and private sector corporate experience. She is a member of the Kansas Society of Certified Public Accountants, the American Society of CPAs and the Petroleum Accountants’ Society of Kansas.
301 N. Main Street
Wichita, Kansas 67202