How Section 831(b) Captive Insurance Protects Your Business and Saves You Taxes
How Section 831(b) Captive Insurance Protects Your Business and Saves You Taxes  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Aug 06 2025
Description: Send us a textMost business owners think of insurance as a necessary expense, but what if it could double as a tool to cut taxes? With a Section 831(b) captive insurance company, you can set aside pre-tax dollars to cover risks traditional insurance won’t touch… All while building a financial safety net for your business. In this episode, Van Carlson, founder of SRA 831(b), explains how captives work, the types of risks they can cover, when it makes sense to use one, and how to stay compliant under IRS rules. 👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ Chapters:(01:34) What Is a Captive Insurance Company?Captive insurance companies let businesses self-insure specific risks using Section 831(b) for tax-deferred funding.(02:55) Funding Uninsured RisksUnfunded liabilities can drain after-tax cash, but 831(b) allows businesses to cover them with pre-tax dollars.(06:00) Captive vs. 401(k) ComparisonA captive works like a 401(k) for risk, building tax-deferred reserves instead of retirement savings.(10:41) What Captives Actually CoverCaptives can insure supply chain disruption, brand damage, cyber threats, and more through “halo coverage.”(15:58) How Do You Set Up And Run a Captive? Setting up a captive involves forming a C corporation, underwriting policies, pooling risks, and managing claims. (25:48) IRS Scrutiny and ComplianceHow to avoid common pitfalls by ensuring proper risk pooling, accurate underwriting, and full documentation. 👉Learn more about Captive Insurance and Section 831(b) at SRA 831(b): https://www.831b.comPodcast Host:Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com🚀 Visit:  https://www.TaxSavingsPodcast.com 🚀 Check Out TaxElm: https://taxelm.com/🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/🚀 YouTube: www.TaxSavingsTV.com👋🏼 GET IN TOUCHYou can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏🙏 LEAVE A REVIEWIf you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐🎙 ABOUT THE PODCASTThe Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.