Captive Insurance, Self-Insurance, Captive Planning  for Nationally, Tennessee, Indiana, Wisconsin, Illinois & surrounding areas

We’ve Got You Covered

Structuring, implementing and managing a captive is not a simple do-it-yourself project, but rather an intricate process that requires the expertise of an experienced professional. Any type of self-insurance is a legal entity that is difficult and complicated to design, implement and manage. In order to reap all the benefits, you need someone who understands how to navigate this complex maze.

The Professionals of M.R. Mead & Company have the intimate understanding and practical hands-on experience to structure a captive in a manner that is most beneficial to you.

It is important to note that not every state will allow you to form a captive (i.e. California).  However, if you have formed a captive elsewhere, you can use it in the state of California: you simply can’t establish a captive insurance company in the state of California. States that allow the formation of a captive Insurance company are called captive ‘domiciles’. There are currently about 35 states in the U.S. that are captive domiciles. Many companies choose to establish captives outside of the United States. Often referred to as offshore captives, this is an effective way to adhere to regulatory statutes that govern the creation of a captive. Bermuda is host to literally thousands of captive insurance companies, and the Cayman Islands is a close second in sheer numbers for offshore captive insurance companies.

An Analytical Approach

Many small to medium-sized businesses are reaping the benefits of establishing captive insurance companies. M.R. Mead & Company has helped many, many businesses form a captive.  

The first thing we do is talk to you, the business owner. We determine through informational discovery and professional analysis whether or not the establishment of a captive insurance company is the best step for you. Should the formation of a captive prove to be beneficial to you, we then determine if your company can meet regulatory and capital requirements.

Funding Your Captive

Every business requires capital, and a captive insurance company is no different. Therefore, our first step is to have you capitalize this new business venture. Every domicile has established specific regulations that spell out the detailed capital requirements, with most requiring a minimum of $250,000 in capital.

We assist you with taking the necessary steps to capitalize the company:

  •  We will work with you and an actuary that either we recommend or one of your choosing. The actuary will work up an example of what your captive will look like.
  • We look at:
    • Your policies
    •  Claims
    •  Premiums
    •  Exclusions
    •  Risk that aren’t covered that you may want to cover
  • Based on his findings after careful analysis, the actuary will establish a premium.

Managing Your Captive

As you can imagine, the establishment, execution and ongoing management of a captive Insurance Company is heavily regulated. M.R. Mead & Company provides the professional Capital Insurance management Services that allow you to simply run your business as usual.

After the actuary has determined the amount of your premium, we can get in to examine the many creative payment options available to you as a business.

  • Flexible premium payments: You may be able to pay overtime, and you may be able to pay with credit. It’s another advantage of being the owner of the captive: you can extend credit to your company. Some states allow a trust to own the captive. Also, remember that premiums paid in are deductible, so there can be tax advantages. However, that should never be the sole reason for establishing a captive.
  •  Disbursements: We will work with you to determine the best disbursement option for you. The captive will have to make disbursements to the manager, along with paying out any claims. If you haven’t paid any claims, we can work with you to make sure you follow all regulations.

M.R. Mead & Company ensures your compliance with all federal and state regulations and provides the support you need with the personal attention you deserve.