SRA 831(b) Admin Introduces Halo Coverage to Address Insurance Market Gaps

SRA 831(b) Admin has introduced Halo Coverage to its portfolio of more than 25 self-insurance policies, providing businesses with enhanced protection against the limitations of traditional insurance. This new offering addresses critical gaps in coverage, including exclusions, denied claims, and deductibles that often leave companies vulnerable to unexpected financial losses. The solution leverages the 831(b) tax code, commonly referred to as micro captive insurance, which allows businesses to defer taxes on premiums while building reserves for unforeseen incidents outside standard risk categories.

Van Carlson, Founder & CEO of SRA 831(b) Admin, highlighted the current challenges in the insurance landscape, stating that the industry is experiencing its most significant hardening in nearly four decades. This environment has led to expanded policy language focused on exclusions rather than additions, creating substantial coverage gaps for small and midsize businesses. Carlson noted that risks such as wildfire carveouts, tariff fluctuations, supply chain disruptions, and cyber crimes have become increasingly prevalent, making comprehensive protection more essential than ever. The Halo Policy is specifically designed to complement existing insurance by covering areas where traditional policies fall short, thereby safeguarding operational continuity and cash flow.

Halo Coverage focuses on six key elements to strengthen business risk management. It reduces out-of-pocket expenses by addressing deductibles and self-insured retentions, preserving vital cash flow during claims. The policy fills coverage gaps by protecting against exclusions and uncovered perils in primary insurance, ensuring that businesses are not left exposed to unexpected liabilities. Unlike excess insurance, Halo Coverage works alongside existing policies rather than simply adding layers of coverage, providing integrated protection. The solution is customizable, allowing businesses to tailor protection to industry-specific risks, and it offers tax-advantaged risk financing through deferred reserves, enabling efficient management of unexpected losses.

An 831(b) Plan enables businesses across various industries to self-insure against common unfunded liabilities, including warranties, supply chain interruptions, political risks, lawsuits, and other unpredictable threats. Premiums paid into these plans are tax-deferred and function as a rainy-day fund, managed by the business's trusted financial advisor and invested to grow over time. This approach is particularly valuable in the current hardening insurance market, where rising rates, reduced coverage, and market pullbacks have made alternative risk strategies increasingly necessary. Incorporating an 831(b) Plan with Halo Coverage into a company's overall risk management strategy enhances operational and financial stability, providing the flexibility needed to navigate challenging conditions. For additional details, visit https://www.831b.com.