Group captive insurance may suit construction companies

Description

Abstract: Every business needs various types of insurance to manage risk. For construction companies, however, it’s particularly important. Of course, sufficient insurance comes with considerable costs. One way some construction businesses may be able to manage these costs is to join a group captive insurance arrangement. This article explains how these arrangements work, including the tax impact, benefits and risks. A sidebar notes that the IRS is increasingly scrutinizing and challenging “microcaptives.”