06 Jan Case Study: Restaurant owner utilizes a captive insurance program

The restaurant owner approached Bozzuto & Associates to review her current insurance plan. After analyzing the business, Bozzuto & Associates recommended a captive insurance program as the best plan of action.

Captive insurance programs reduce and stabilize monthly insurance costs for restaurant owners

The restaurant had a few locations with minimal claims, had a very good safety program in place and was vigilant in keeping the restaurant locations up to code so as to avoid unwanted customer injuries. Restaurant owners that are paying more than $200,000 annually in insurance premiums are often very good candidates for captive insurance programs.

Utilizing various insurance companies available to underwrite the policies including Worker’s Comp and General Liability, a program was established that was based entirely on the loss history of the restaurant rather than having to pay extra in premiums due to the other accounts in the marketplace. As an added bonus, additional coverage was added to the plan, yet the premiums were lower than what they were paying in the traditional marketplace.

Captive Insurance program provides an opportunity for wealth accumulation

Captive insurance programs provide a path to wealth accumulation. A well managed and effective captive insurance program provides significant tax advantages. As wealth accumulates, extra funds can be distributed as dividends that are taxed at a much lower rate.

If you think your company might benefit from a captive insurance program, please contact us today to see if you qualify. The team at Bozzuto Insurance Services is experienced in Group Captives and can bring you access to the best programs available. We are not interested in bidding your insurance in the traditional market. We are interested in helping you manage your risk, educate you about your alternatives, and determine if a Captive Insurance Solution might work for you.