By: Bryan Porter
A contractor’s strategic plan goes beyond day-to-day positioning and operations – it evaluates opportunities, contemplates unforeseen risks, and demands return on investment. However, in light of the prolonged economic recovery, many contractors remain cost-conscious when developing their strategic plans. Investment in property and equipment, additional labor force, and professional development is often delayed until the lack thereof becomes a critical constraint on operations.
So how can contractors seize strategic opportunities and proactively manage risks while watching the bottom line and containing costs? One such solution lies in captive insurance programs – specifically group captives. (Other types of captives are beyond the scope of this topic.)
A captive is a vehicle that provides required insurance products and other ancillary benefits to its members. Captives offer contractors transparency into insurance costs, greater control of future expense, and significant advantages beyond traditional insurance coverage – all while maintaining cost control and keeping cash flow in check. This article will explore ways in which a captive can benefit a company in meeting its strategic goals.
In the September/October 2017 issue of CFMA Building Profits, Bryan Porter, a Director in the firm’s Audit, Accounting and Consulting Department, explores the world of captive insurance.
To read the rest of the article, please download Thinking Strategically: Consider the Benefits of Captive Insurance from CFMA’s website.
BRYAN C. PORTER, CPA, MS, is a Director in the Audit, Accounting, and Consulting Department of Ellin & Tucker in Baltimore, MD, where he advises privately held businesses in various industries, including construction, manufacturing, wholesale distribution, and technology. Bryan is also a member of the firm’s Audit and Accounting Technical Standards Committee, which oversees programs designed to educate the company and its clients on current accounting and business topics. He may be reached at firstname.lastname@example.org