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WHAT ARE THE

DISADVANTAGES

OF A CAPTIVE/RRG?

 

 

Captives often involve greater risk assumption and any unanticipated losses become the captive’s responsibility.  In such situations, an additional cash infusion from the captive’s owner may be necessary for the captive to remain solvent.

 

In addition to the insurance expenses of the program, a captive also has set-up costs (up to $100,000) and annual operating costs (roughly another $100,000).  Some captives also involve extensive tax planning fees.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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