May 2025 Edition

As we step into May, there’s a sense of momentum in the air. Spring is in full swing, Q2 is underway, and for many businesses, it’s the perfect time to take a closer look at how to reduce risk and retain more profit before the second half of the year begins.

Whether you’re revisiting your current risk strategy or exploring the idea of forming a Captive for the first time, now is a smart time to act. The longer you wait, the fewer options you may have when year-end deadlines approach, and they always arrive faster than we expect.

If you’ve been reading The Captive Tribune for a while, you already know how powerful a Captive can be for long-term planning. If you’re new here or still have questions, Feel free to call me at 1-833-US-CAPTIVE (1-833-872-2784) or check out our Captive 101 section on our website.

Let’s make sure your business is prepared for whatever comes next.

Sincerely,

Larry Papola

Lawrence J. Papola, Jr.

President

LPapola@US-Captive.com

1-833-US-CAPTIVE

(1-833-872-2784)

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Events & Webinars

CIC Services Files Second Lawsuit Against IRS over Micro-Captive Rules

Captive insurance manager CIC Services has filed a second lawsuit against the Internal Revenue Service (IRS) looking to invalidate an IRS rule targeting small captive insurance companies known as micro-captives.

In its suit, filed in the US District Court for the Eastern District of Tennessee, Knoxville, Tennessee-based CIC Services says the rule is a continued campaign of regulatory overreach by the IRS that harms legitimate business owners and that the new rule mirrors an earlier regulation that was struck down in court.

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First-Quarter Catastrophe Losses Exceed Average Losses for Period

Catastrophes were responsible for at least $83 billion in economic losses worldwide during the first quarter of this year, well above both the 21st-century first-quarter average of $61 billion and the $54 billion in losses during the same period last year, according to Aon.

First-quarter catastrophe losses were driven by California wildfires, Aon said in its Q1 Global Catastrophe Recap, as well as several other billion-dollar events including multiple severe convective storm (SCS) outbreaks across the United States in February and March and earthquakes in Myanmar and China.

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Captive Claim Highlight

Client Profile

Industry: Construction

Specialty: Construction company for major capital projects

Location: New York

Claim Information

Description: One of our Insured's employees was injured on the job when a strap on a skid holding planks of wood fell on his leg. The Insured filed a claim with their commercial workers compensation carrier and incurred costs conforming to their deductible. Through their Captive Actual Net Loss Insurance Policy "Deductible Reimbursement (Workers Compensation)” coverage, they were able to receive reimbursement for their paid deductible.

Line of Coverage: Deductible Reimbursement (Workers Compensation)

This exposure was elected for coverage by the client under their Captive’s policy. This resulted in a claim payment amount of approximately $70,000.

*Please note that each claim will undergo an independent investigation and thorough review process. Various components specific to the claim at hand will be assessed thoroughly to determine if the loss is covered by the policy.

Happening This month:

5/1: May Day

5/1: National Day of Prayer

5/4: Star Wars Day

5/5: Cinco De Mayo

5/6: National Nurses Day

5/11: Mother’s Day

5/17: Bike to Work Day

5/20: National Rescue Dog Day

5/23: World Turtle Day

5/24: National Brother Day

5/27: Memorial Day

5/29: National Burger Day

Why Form a Captive?

There are numerous potential advantages to forming a captive insurance company. Captive insurance companies are formed for both economic and risk management purposes. By forming a captive insurance company, a business can dramatically lower insurance costs in comparison to premiums paid to a conventional property and casualty insurance company.

Captives 101

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Insurance Experts provides expert knowledge and assistance to individuals, families, and business owners who are making decisions about the proper insurance coverage for their needs. We’re here to help you cover losses you shouldn’t have to on your own.

Let our team of experts guide you through the daunting task of selecting the right insurance coverage for you or your business:

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48 South Service Road

Suite 400

Melville, NY 11747

Office: 1-833-US-CAPTIVE

(1-833-872-2784)

Fax: 1-888-929-6565