Indianapolis – The Indiana Manufacturers Association (IMA) and KeyState Captive Management are proud to announce the formation of the Midwest Manufacturers Captive Pool. This program has been endorsed by IMA and allows manufacturers to form their own captive insurance company to enhanced enterprise risk management. The pool currently consists of four Indiana manufacturers, and more companies are expected to join the pool in 2016.
The captive augments a manufacturer’s commercial insurance policies by covering commercial deductible layers, increasing coverage levels on existing policies (excess layers), and identifying other currently unfunded risks to insure where commercial insurance is not available to the company. Participating IMA members have insured risks such as product liability, reputation risk, business interruption, and workplace violence through their captive. The appropriations bill passed by Congress in December 2015 moved the annual premium limit on this type of captive from $1.2 M to $2.2 M for tax years after 2016.
The Midwest Manufacturers Captive Pool insurance company is implemented by Crowe Horwath LLP, a national CPA firm. It is managed on an ongoing basis by KeyState Captive Management. If properly structured, the captive may also allow companies to take advantage of a significant small business incentive available under a section of the tax code.
“KeyState and Crowe have a similar program for banks that has been very successful, and we are thrilled that this program has now been established for manufacturers. We expect more manufacturers to join the program in 2016 and beyond,” said Jeffrey Goodwin, Executive Vice President & COO of IMASERV, Inc., IMA’s wholly-owned, for-profit subsidiary.
KeyState Captive Management has been endorsed by 21 professional organizations and manages 70 captives for banks and manufacturers across the country.