SRA 831(b) ADMIN®
SRA strives to embolden business owners through innovative risk management. We utilize the 831(b) Tax Code, also known as micro captive insurance, to create tax-deferred risk mitigation and give business owners greater peace of mind.
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UNDERSTANDING 831(b) PLANS
What is an 831(b) Plan?
An 831(b) Plan, also referred to as captive or microcaptive insurance, is designed to help business owners mitigate unfunded liabilities. Much like the 401(k) tax code allows an employer to set aside tax-deferred dollars for retirement, the 831(b) tax code allows a business to set aside tax-deferred dollars for underinsured and/or uninsured risks.
The 831(b) Tax Code was created in 1986 in response to the 1980s Liability Crisis, which was a hardening of the traditional insurance market. Today, we are seeing that same hardening happening in the Property and Casualty market as economic instability becomes increasingly volatile. It is more important than ever for business owners to create a safety net for the uninsured assets of a business. By utilizing the 831(b) Tax Code, businesses can self-insure for enterprise risks such as business interruption, lawsuits, data breaches, supply chain interruptions, warranties, insurance exclusions and sub-limits, and many more.
Who is an 831(b) Plan Right For?
Small to middle-market businesses are the backbone of the American economy. From healthcare to manufacturing to professional services and more, SRA 831(b) Plans don’t just offer a safety net; they provide peace of mind, ensuring entrepreneurs have the support they need to not only survive but even thrive amidst the uncertainties of the market.
What Keeps You Up At Night?
As the largest plan administrator in the country, we provide cost-effective, platinum-level service to help small-to-midsize businesses protect their success and sleep better at night.
SRA Plans
SRA 831(b) PLAN
In today's ever changing risk environment, it's important for successful businesses to develop a comprehensive risk management program. COVID-19 was a hard lesson, insurance carriers denied business interruption claims citing indirect losses and language that limited coverage. While state and local governments labeled businesses as non-essential and forced them to close. Hindsight is 2020, and the 2020 pandemic made it clear that business owners must establish an 831(b) plan. Our 831(b) Plan not only addresses tangible asset risk through traditional insurance carriers but also addresses intangible asset risks.
Business owners today find themselves contractually liable to many third parties including vendors, customers, contractors, and employees. These liabilities (e.g. service contracts, warranties, protection plans, deductibles, etc.) can seem manageable in the short-term, however, over the long-term they may pose a risk to a business’s cash flow and overall health. An SRA 831(b) Safe Harbor Plan provides participants an efficient way to mitigate these risks and allow business owners to continue honoring their contracts.
SAFE HARBOR PLANS
CASE STUDIES
SRA has made it possible for any successful business to take advantage of the same tools previously reserved for Fortune 500 Companies. From 831(b) Enterprise Risk Management to Safe Harbor Plans to mitigate contractual liabilities, we have solutions to help you mitigate risk through tax-deferred dollars. Read how our clients utilized their 831(b) to weather the storm.