Captive insurance is a form of self-insurance where a business creates its own licensed insurance company to cover specific risks that may not be easily insured by commercial carriers. Instead of paying premiums to third-party insurers, the business pays premiums to its own captive entity, gaining more control, customization, and potential profitability.

Captive insurance companies are often used to manage:

By turning insurance into a strategic asset, business owners can gain tax benefits, cost savings, and a new level of control over how risks are managed.

Captive insurance is a well-established strategy recognized by the IRS when operated within legal guidelines. With OMNI 360 Advisors guiding the process, your business can maximize benefits while minimizing exposure to audit risk. Key tax benefits include:

When properly structured, the premiums your business pays to its captive insurance company can be tax-deductible as a business expense, reducing your overall taxable income.

Premiums received by the captive may not be taxed immediately, especially if the captive qualifies as a small insurance company under IRC Section 831(b). This allows the captive to accumulate reserves tax-deferred, improving cash flow and investment flexibility.

Captive insurance companies can serve as vehicles for generational wealth planning. Ownership of the captive can be passed to heirs or trusts, helping transfer wealth outside of the taxable estate.

Because captives are separate legal entities, they can provide a shield against business liabilities, adding a layer of protection to accumulated assets.

Captive insurance is not just for Fortune 500 companies. With changing tax laws and increased business complexity, more mid-sized businesses are leveraging captive structures to improve financial performance and planning.

Our professionals assess the feasibility and benefits of forming a captive based on your specific business risks, goals, and financial position.

At OMNI 360 Advisors, we take a fully integrated approach—combining tax, legal, financial, and risk management expertise to design the right captive solution for you. Here’s how we guide clients through the process:

We conduct a comprehensive analysis of your current and potential risks, insurance costs, and financial standing. This includes evaluating which risks are insurable under a captive structure.

Once feasibility is confirmed, we assist with selecting a domicile (onshore or offshore), filing formation documents, capitalizing the captive, and obtaining necessary licensing and regulatory approvals.

We help develop insurance policies that match your business’s unique risk profile, ensuring policies are actuarially sound and compliant with insurance regulations.

We provide ongoing support for tax filings, annual audits, premium pricing, policy renewals, and corporate governance requirements, ensuring your captive meets both IRS and state regulatory standards.

We integrate your captive insurance strategy into your overall financial and tax planning to support long-term goals such as succession, estate planning, and wealth transfer.

There are several types of captive insurance models available, and the right one depends on your business size, goals, and risk profile. OMNI 360 Advisors helps you choose the structure that best fits your needs:

Captive insurance companies must be operated as true insurance entities, not tax shelters. The IRS has increased scrutiny in recent years, especially regarding micro-captives (under IRC 831(b)). OMNI 360 Advisors ensures compliance with:

Our team prioritizes transparency and diligence to help you avoid penalties while still unlocking the full value of captive planning.

Forming and managing a captive insurance company is a highly specialized process. At OMNI 360 Advisors, we offer an unmatched advantage by providing all-in-one expertise under one roof—including CPAs, tax attorneys [insert new link for tax attorney], financial advisors, and risk management professionals.

Our integrated model ensures that every decision is aligned with your broader business strategy. Whether you’re focused on reducing taxes, preserving wealth, or transferring assets to the next generation, we help you build a compliant, profitable, and future-ready captive insurance solution.

Q: Is captive insurance legal?
Yes, captive insurance is a legal and IRS-recognized strategy when properly structured and maintained. Our team ensures that all regulatory and tax guidelines are strictly followed.

Q: How long does it take to set up a captive?
Formation typically takes 3 to 6 months, depending on the structure, domicile, and licensing process.

Q: Can a captive insure any type of risk?
Captives can cover a broad range of risks, including those often excluded or overpriced by commercial insurers. All policies must meet actuarial and regulatory standards.

Q: How much capital is needed to start a captive?
Capital requirements vary based on the jurisdiction and coverage types, but generally range from $250,000 to $1 million for small to mid-sized captives.

Take control of your insurance strategy and unlock powerful tax advantages with a captive insurance solution tailored to your business. Whether you’re exploring the idea or ready to move forward, OMNI 360 Advisors is here to guide you through every step.

Our team is ready to evaluate your business risks, explore the feasibility of captive planning, and help you build a tax-smart, future-focused strategy. Contact us at 609-452-0889 today to schedule your free consultation.

How we do business – ADV Part 3 – CRS (Please see attached document)

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