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Toby Mathis
Learn How to Manage Risk with Captive Insurance

What’s the difference between 831(b) and 401(k) planners? Not much, just a different tax code. Both allow clients to put away profits today to weather tomorrow’s storms.

In this episode, Toby Mathis of Anderson Advisors talks about captive insurance with Van Carlson, CEO and founder of Strategic Risk Alternatives (SRA).

Van has more than 25 years of experience within the risk management industry. He began his career with Farmers Insurance Group as an agent. Now, he focuses SRA on risk management primarily and facilitates SRA to assess and solve for clients’ risks. Van’s primary goal is to continue the upward growth of SRA and develop new products to bring to market.


  • S. Tax Code and Americans: The tax code is used for tax planning, but should be used for its original purpose to be a risk mitigation tool.
  • Umbrella Policy and Casualty Insurance: You find out how good of a policy you have when you need it. An umbrella policy isn’t over the top, but it doesn’t cover everything.
  • COVID-19: Read the fine print of policies and seek advice from agents. Pandemic coverages are not considered coverage under the Business Interruption Endorsement.
  • Captive Insurance: Set up your own insurance company—you own it and you’re paying premiums you deduct. The insurance company doesn’t have to pay tax on premiums.
  • Who is it for and what type of risk could it insure? Risk is not a problem. Business owners that are advanced in their thought processes and more forward-thinking recognize and understand asset protection and the risk it takes.
  • Actual Physical Loss: Business Interruption Policy pays for your employees and building loans, unless it doesn’t have a direct physical loss.
  • Right to Defend on Liability Policies: Even if there’s no coverage but you get sued, general liability policies cover the legal defense. Lawsuits are going to be the next big thing when people, guests, and patients, not employees, contract COVID.
  • Rules and Regulations: Two tax codes allow you to defer income out of your business. 401(k) for the retirement of yourself and employees, and 831(b) to build up reserves, take profits today and in the future.
  • Four-Part Test: Do transfer risk, risk distribution, insure only things that can happen by accidents (not business risks), and act in a principal’s insurance to elect under 831(b).
  • Gross Revenue: Cap it because if your gross revenue goes up, your premium increases. The more gross revenue you have, the more exposure you have for claims.
  • Cancel Culture: Detrimental to businesses; have cash on hand because banks aren’t going to help you out all of a sudden.
  • Declare a Dividend: Take it out as a long-term dividend rate and shut it down, pull out capital gains, or put it to work.
  • Investment Agreement: What can be done with the reserves? There are rules, but for the most part, clients just leave it to the bank and go forward with the risk.
  • Brand Damage: Dependent on third-party vendors, you can’t go and unlock your door, open it, and open for business. Get there, reach in, and obtain client information.




Business Interruption Insurance Policy

Errors and Omissions (E&O)

Health Insurance Portability and Accountability Act (HIPAA)

Paycheck Protection Program (PPP)

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Full Episode Transcript:

Toby: Hey, guys. Welcome back to the Anderson Advisors Podcast. I have Van Carlson on here. We’re going to be talking about captive insurance. Why don’t you introduce yourself a little bit, man? How we’ve been working together for a couple of years. I just want to get people to understand why you do what you do.

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