Captive Insurance Calculator

What Is the Captive Insurance Calculator?

The Captive Insurance Calculator is a simple tool. That shows how much your business could save by switching to captive insurance instead of traditional insurance. It analyzes key details like:

Annual premiums
Claims history
Setup costs
Admin fees
Tax benefits

Then, it compares costs and savings side by side. Whether you run a small or large business, this tool helps you make smarter insurance decisions and see potential long-term savings.

How Does the Captive Insurance Calculator Work?

Using the calculator is easy. Here’s how it works:

Enter Your Current Annual Premium
Type in how much you pay yearly for traditional insurance.
Add Your Historical Claims
Enter the average amount you’ve claimed over the years. This helps calculate your actual costs.
Include Setup Costs
Add the one-time cost to set up captive insurance.
Add Admin Costs
Enter the yearly cost of managing your captive insurance, including admin fees.
Enter Your Tax Rate
Input your tax rate to estimate savings.
Click ‘Calculate’
The tool will compare your 5-year costs for traditional insurance vs. captive insurance and show your potential savings.

Why Use the Captive Insurance Calculator?

This tool makes insurance planning simple and clear. Here’s why you’ll love it:

Saves Time: Avoid complicated spreadsheets and guesswork.
Easy to Use: No need to be a financial expert—it’s simple and straightforward.
Clear Results: See exactly how much you could save over time.

If you’re unsure about switching to captive insurance, this calculator is a great starting point.

Benefits of Captive Insurance

Here’s why many businesses choose captive insurance:

Cost Efficiency: Only pay for your own risks, not shared risks with others.
Tax Benefits: You could qualify for tax savings depending on your location.
Customization: Build an insurance plan tailored to your business’s specific needs.

Example: How It Works

Here’s an example to show how the calculator works:

Current Insurance Premium: $500,000/year
Annual Claims: $200,000
Setup Costs: $100,000 (one-time)
Admin Costs: $25,000/year
Tax Rate: 20%

5-Year Cost Comparison:

Traditional Insurance Cost: $2,500,000
Captive Insurance Cost: $1,625,000
Savings: $875,000

That’s a lot of money your business could save by switching to captive insurance.

FAQs About the Captive Insurance Calculator

Q1: What is captive insurance?
Captive insurance is when a business creates its own insurance company to cover specific risks. It gives you more control, customized plans, and often lower costs than traditional insurance.Q2: Is captive insurance right for every business?
No. It’s best for mid-sized to large businesses with steady claims or high premiums. Talk to a professional for advice.Q3: What is traditional insurance?
Traditional insurance is bought from large providers. They pool risks across many customers, which may raise costs for businesses with fewer claims.Q4: How accurate is the calculator?
The calculator provides an estimate based on the numbers you enter. Actual savings will vary depending on your situation.Q5: What tax benefits does captive insurance offer?
Tax benefits may include deductions for claims reserves or operating costs. A tax advisor can provide specific advice based on your location.Q6: Do I need to be a financial expert to use it?
Not at all! The calculator is designed to be simple and user-friendly. Just enter your numbers, and it does the math for you.Q7: Do I need to pay setup costs upfront?
Yes. Setup costs are typically a one-time expense when creating a captive insurance plan. Be sure to budget for this.

Ready to Save Money?

Try the Captive Insurance Calculator today and see how much your business could save. It only takes a minute to get clear, easy-to-understand results. Take control of your insurance and make smarter financial choices!