Captive Formation

Whether it is to replace or supplement existing third party coverage or provide coverage for risks unavailable in traditional markets, a captive insurance company (CIC) may be the right alternative for your business. When created and managed properly, captive participants can enjoy improved risk management, better cost control and improve cash flow and liquidity. CIC Management, LTD (CICM) works with a variety of industries to form captives, including manufacturing, services, retail, construction, healthcare, and transportation, as well as many others.

The creation and management of a captive is directly dependent upon the needs of the business forming it. Our creation process involves several stages to ensure a viable captive that will deliver exceptional value to our clients.

Captive Formation Process

Preliminary Analysis

Evaluation of tax returns from the last five years.

Analysis of existing insurance companies, including premiums, limits, and exclusions.

Examination of business and affiliate insurance claims history.

Assessment of current organizational chart and ownership structure of all entities and subsidiaries.

Feasibility Study

This is followed by a feasibility audit by an independent actuarial team. The purpose of this stage is to:

Determine policy, coverage, premium distribution

Establish ownership structure of the captive

Designate a domicile

Captive Implementation

An application for forming a CIC is completed and sent to the insurance commission.

Upon the commission’s approval of the application, the captive is formally incorporated and bank accounts are established to fund the captive.

CICM then manages the captive on a daily basis, ensuring that it complies with regulatory requirements and provides tangible benefits to clients. Learn more about Captive Management.

Unique insurance coverages offered by CICs:

  • Administrative Action Insurance
  • Deductibles
  • Environmental Coverage
  • Business Risk Indemnity Insurance
  • Computer Operations and Data Retention Insurance
  • Contract Cancellation Insurance
  • Directors & Officers Liability Insurance
  • Employment Practices Insurance
  • Kidnap, Ransom Insurance
  • Litigation Expense Insurance
  • Loss of Key Employee Insurance
  • Product Liability Insurance
  • Special Property Risk Insurance
  • Tax Indemnity Insurance
  • Trademark and Service Mark Infringement Insurance