In many cases, yes — an 831(b) Plan can be structured to insure more than one related operating entity. However, whether that is appropriate depends on the ownership structure, risk profile, and overall business objectives involved.
Because an 831(b) Plan is a regulated insurance company, it must meet specific requirements regarding risk distribution, insurable exposures, and regulatory compliance. When multiple related companies are involved, careful structuring is essential to ensure the arrangement is both operationally sound and aligned with current regulatory guidance.
Each situation is unique. Factors such as common ownership, industry type, revenue levels, and the nature of the risks being insured all play an important role in determining the proper design.
If you’re considering an 831(b) structure that involves multiple entities, we’re happy to evaluate your specific circumstances and discuss what may be possible.