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Reason 3 to Form a Captive | CoreStates Capital Advisors

Reason 3 to Form a Captive

Reason 3 to Form a Captive

Reason 3: Reduced insurance cost: Over the past several years, many businesses saw double-digit increases in their conventional insurance premiums even though their losses remained virtually unchanged. Forming a captive allows them to continue charging themselves a (tax-deductible) premium equal to their historical loss experience.

 

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