Return to flip book view

Preservation Services a Partnership Opportunity with NFIB

Creating significant new value for NFIB membersNFIB + PRESERVATION SERVICES2

3 ►With a Preservation policy, companies pay tax-deductible premiums to themselves vs. a 3rd party. ►Premiums not paid in claims (reserves) are retained by members in their own bank account. ►Reserves can be used for most corporate purposes.1 ►Reserves can be a source of retirement funding.PRESERVATION OVERVIEWSpecialized coverages are available1 subject to Tennessee Dept. of Insurance Approval

BUSINESS BENEFITS2Preservation premiums are pre-tax expensesA) Tax Rate Reductions 15% - 25%2B) Tax Planning FlexibilityC) Bank Reserves Members Own4

52Preservation premiums are pre-tax expensesPay Yourself - not a third party

47%+ MORE CASH WITH PRESERVATIONYearAssumptions: 7% growth rate/yr, 15% compliance fees, 7% claims/yr, 40% combined Federal & state taxesWith PreservationWithout PreservationIncremental CashGraph displays incremental value of $1.00 of Preservation premium per year$0.00$5.00$10.006

73 Subject to regulatory approvals facilitated by Preservation Services, LLCRESERVE WITHDRAWALS3 ► Loans to Policyholders ► Loans to Third Parties ► Equity Investments ► Qualified Dividends ► Claims ► Retirement Funding

NFIB SPONSORED CAPTIVEMembers Participate Based on SIC Codes8

9NFIB can appoint a Board of Member-Advisors to consult with Preservation on specialized coverages.

EMERGING RISKSBad events may have a low probability, but can have disastrous outcomes.10

11Cyber Attacks, Intrusion, MalwareDisease-Mitigation Government Mandates, PandemicsSupply Chain Interruptions, Port Strikes, ShortagesDeductible Reimbursement"Make Whole" Replacement CostBank FailureFederal, State Regulatory ActionsClimate-Related Regulatory ActionsDiversity, Equity, Inclusion, Social JusticeFacilitating Transactions Alleged HarmfulPollution Allegations, Remediation CostsSocial Media, Reputation RiskCryptocurrency ExchangeVandalism and Public DisorderWarrantiesFraud, TheftWorkplace Violence, IntimidationDeparture/Loss of Key Employee(s)Violation of Non-compete or Non-disclosure AgreementLabor Actions, Staffing ShortagesErrors and OmissionsUtility InterruptionsInternal Revenue Service AuditsIntellectual Property InfringementPermits, LicensesProfessional Opinions Labeled “Disinformation”Lender Refusal to Renew Existing Credit LineActs of Foreign GovernmentsTransit DelaysLoss of Key Customer(s)Loss of Key or Anchor Tenant(s)Tortious Contract InterferencePRESERVATION EMERGING RISKS

"MAKE WHOLE" PROVISION ► Primary commercial insurance likely won't reimburse the total cost to replace a damaged asset. ► However, a "Make Whole" provision can cover the gap between the cost of a replacement asset and commercial insurance reimbursement. ►File a "Make Whole" claim and get back in business almost immediately.12

13Original CostDepreciated ValueCommercial InsuranceReimbursementReplacementCost"Make Whole"Provision

WHAT PRESERVATION DOESThe Preservation Team of professionals facilitates: ► Regulatory Compliance ► Tax Filings ► Claims ► Client WithdrawalsOUR TRACK RECORD14 years of captive ownershipOver 10 years of captive management including regulatory, compliance, and tax mattersCustomization, e.g., adding provisions that mitigate new business risks14

15PRESERVATION SERVICESLower Taxes Higher Cash Flow Cash Reserves Risk ReductionPay Yourself.Protect Your Business.Insure Your Future.

Copyright © 2023 Preservation Services, LLCAll rights reserved. No part of this publication may be reproduced without express written permission.Nothing in this booklet should be construed to represent tax advice.CONTACT USphone: (888) 535 - 7475email: info@preservationservicesllc.comPreservation Services, LLC16