What Is an 831(b) Captive Insurance Plan?

If your business carries risks that traditional insurance doesn't fully cover, an 831(b) captive insurance plan might be worth a closer look. In this post, we break down how these plans work, why some business owners use them as part of a broader risk management strategy, and what the IRS requires to keep them compliant. We also cover who this structure may be right for — and the important red flags to watch out for. Whether you're exploring this for the first time or want a clearer understanding of the risks and benefits, this is a practical, no-shortcuts guide to getting it right.