How does a business manage risk and control insurance costs?

Strategies how a business can manage risk and control insurance costs

There are several strategies how a business can manage risk and control insurance costs.

This video will discuss one of them and is an interesting and in some cases can be powerful solution for business owners to:

  • Manage and control Risk
  • Mitigate Business Insurance Premium costs
  • Potential to boost your Personal Wealth

The strategy you will learn is called Captive Insurance.

What is it? -A closely held business set up for the sole purpose to insure the risks of the Parent Company

This video will walk you through and provide a conceptual understanding on how Captives work along with some exercises to identify and strengthen risks management:

There are certain Obstacles to be aware of before getting involved, below are a few we discuss:

  • High claims history
  • Advisor incorrectly positioning of Captives as legacy planning
  • This is an advanced planning strategy, beware of Unqualified professional advisors
  • Incorrectly thinking this strategy only works for fortune 500 companies
  • Big or small a business must run a “feasibility study” to determine if a captive is a sounds choice

Key Takeaway:

A Captive is not right for every business BUT you must explore your numbers to determine if it is a good fit.

Check out the video to watch what happens.

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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Gold Family Wealth, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Gold Family Wealth, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Gold Family Wealth, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Gold Family Wealth, LLC’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are a Gold Family Wealth, LLC client, please remember to contact Gold Family Wealth, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

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