Market Overview

What The Fiscal Cliff Means for Businesses: Looking at Ways to Mitigate Losses for 2012


Dover, DE:  As Americans celebrate the holidays with family and friends, they cannot help but ponder over the economic uncertainty facing them. The fiscal cliff is an issue that has been on everyone’s mind, impacting professional firms and business owners and in nearly every industry.  The fiscal cliff illustrates the financial uncertainty for almost any business with a connection to government funding, yet there is an insurance solution for these business owners that will allow them to lessen their losses and enjoy the holiday seasons with more financial certainty. This solution is reallocating funds into their own captive insurance policy.

It is still too soon to predict exactly which businesses will suffer the greatest impact, and to what extent they will face broad economic turmoil. However, the leading sectors exposed to the fiscal cliff are medical, defense, and financial. In some industries, the reduction in government funding will precipitate the loss of employees who may be critical to their infrastructure.

“Businesses still have time to ease these losses by funding (in 2012) insurance premiums into their own captive insurance company,” says Brad Barros, Managing Director and co-founder of Attainium Capital Development Advisors, LLC(Attainium).  “Premiums, that may be tax deductible, could be used to build large reserves and surplus to offset losses generated by the fiscal cliff.”

Additionally, companies that are able to reallocate significant funds into their own captive insurance company may not only better survive the fiscal cliff, but may actually profit from it, as they acquire market share from their less-prepared competitors.  From an economic standpoint, the kitchen table may become smaller, but shareholders and employees of businesses with foresight will have more of the pie for themselves and be able to enjoy the holiday season.

To read more about the fiscal cliff, read Brad’s recent commentary in Business Insider.

About Brad Barros:

Brad Barrosis Managing Director and co-founder of Attainium Capital Development Advisors, LLC(Attainium). Over the past 35 years, Attainum’s founding principals have worked with hundreds of successful privately and publicly held businesses, designing and implementing benefit, insurance and risk-management solutions effectuating more than $4 billion of benefits with programs involving more than $300,000,000 of recurring annual insurance premiums.


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