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If you'd like to add captive insurance to your professional offerings and would like to become an affiliate, please contact us at 832.330.4101.
We own and operate the first Montana based series LLC named Aegis. We run it in conjunction with Aceterrus Insurance Resources Last week, footage of the Chicago Transit Police forcibly removing a United passenger went viral. But just as shocking was United’s response. Their first public statement will go down in public relations history as one of the most tone deaf responses ever. It took the company 24 hours and three attempts before its communications contained the appropriate level of contrition. In the intervening period, their stock price dropped and public perception of the company plummeted. United is clearly a company that needs to engage in an aggressive PR campaign to right their image with the flying public. If they had a captive insurance company (and, like most Fortune 500 companies, they probably do) and had the foresight to properly underwrite a group of business policies, they would have a reputational restoration policy that would reimburse the parent company for PR expenses and some of the lost income. This is simply one more real world example where a captive could provide insurance not underwritten by traditional third party carriers.
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If you'd like to add captive insurance to your professional offerings and would like to become an affiliate, please contact us at 832.330.4101. We own and operate the first Montana based series LLC named Aegis. We run it in conjunction with Aceterrus Insurance Resources It's no secret that the U.S. economy is increasingly based on intellectual capital. This means the cost of defending one's IP rights should be at the forefront of any business with intangible assets. According to the 2015 Economic Survey conducted for the American Intellectual Property Association, the median cost of litigation is high:  While there are commercial policies available for this exposure, a captive provides the best option for several reasons:
1.) A custom insurance policy: an insurance policy provided by the insurer isn't written to the insured's advantage. In contrast, a captive allows the insured complete control over contract language, insuring coverage. 2.) Complete control of litigation: having a captive allows the insured to chose the counsel best suited to the case. 3.) Fewer problems with claims: while captive adhere to insurance industry standards regarding the claims process, the ability to control the claims process allows the insured more control. If you or a client of yours is interested in using a captive for their IP coverage, please call us at 832.330.4101. If you'd like to add captive insurance to your professional offerings and would like to become an affiliate, please contact us at 832.330.4101.
We own and operate the first Montana based series LLC named Aegis. We run it in conjunction with Aceterrus Insurance Resources The website accounting tools provides the following definition of “reserve” “A reserve is an appropriation of profits for a specific purpose. The most common reserve is a capital reserve, where funds are set aside to purchase fixed assets. By setting aside a reserve, the board of directors is segregating funds from the general operating usage of a company.” For example, suppose a company installs a product and, as part of their service contract, guarantee their work for a specific amount of time. In order to pay for this work, the company’s accountant sets aside a specific amount of money in a “reserve” account to indicate the potential cost of this service. Over a number of years, the size of the reserve increases as the company sells more of its service. In effect, a reserve is nothing more than a company saying, “we potentially have to spend $X amount of dollars on this item.” But the reserve is an accounting liability; the larger it grows, the more it can negatively impact the company’s net worth and, by extension, the company’s ability to get and maintain credit. A far better option is for the company to reclassify the reserve as an expense, usually by converting it into a warranty program. This allows the company to remove the liability from its balance sheet and place it into a captive insurer. This also turns a segregated liability into an expense, which is far more efficient. In reality, if your company is using a reserve for a liability, it’s already more than halfway to forming a captive insurer. |
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