Businesses have been using captive insurance companies for years. Captive insurance companies are a powerful risk management tool that allow businesses to tailor their insurance coverage to their specific needs and risks. The business’s risk is determined on its own merit instead of being charged a premium based on the risk of its entire industry.
While captives can be cost – and tax – effective, they are closely scrutinized by the IRS.
Business owners that are considering captives and alternative risk entities should consult a CPA firm with experience in captives to ensure their entity is compliant with the IRS.
Advantages of Captive Insurance
Some advantages of going captive include:
- Insurance coverage customized to fit your business needs
- Reduced operating costs
- Increased coverage and capacity
- Greater control over insurance claims
- Funding and underwriting flexibility
- Direct access to wholesale reinsurance markets
Audit Solutions to Fit Your Needs
KRD has decades of experience providing captive insurance audits. We understand that our clients benefit from customized audits designed to fit their unique risk profiles.
From updated accounting standards to captive law and regulation changes, KRD’s audit team stays abreast on the latest law and regulation changes. When you partner with KRD, you’ll have a team of accounting and audit professionals that will identify new opportunities and tackle any challenges that may come your way.
Contact KRD Today for Your Complimentary Initial Consultation
If your captive requires an independent audit, contact KRD today at 847-240-1040 or fill out our online contact form.