SRA 831(b) Admin, a leading 831(b) Plan Manager, has announced the launch of Halo Coverage, a new policy aimed at enhancing consolidated business risk mitigation. The policy is designed to address the limitations of traditional insurance by covering exclusions, deductibles, and denied claims, offering businesses a more comprehensive risk management solution.
The Halo Coverage policy leverages the 831(b) tax code, also known as micro captive insurance, allowing businesses to set aside tax-deferred reserves for uninsured incidents. This approach is particularly timely as the property and casualty insurance market experiences a hardening cycle not seen in nearly four decades. According to Van Carlson, Founder & CEO of SRA 831(b) Admin, insurance policies have become increasingly restrictive due to exclusions, while risks such as wildfires, tariff fluctuations, supply chain disruptions, and cyber crimes have grown. "This Halo Policy is designed to pick up where your traditional policy is limited, ensuring that unexpected gaps don’t disrupt operations or cash flow," Carlson stated.
Halo Coverage covers six key elements: deductibles and self-insured retentions, filling coverage gaps, operating alongside existing policies rather than as excess insurance, customizable protection tailored to industry-specific risks, tax-advantaged risk financing, and efficient management of unexpected losses. An 831(b) Plan enables businesses in any industry to self-insure for common unfunded liabilities, including warranties, supply chain interruption, political risk, and lawsuits. Premiums are tax-deferred and can be invested, managed by the business’s trusted financial advisor, creating a rainy-day fund for high-severity, low-frequency perils.
As the insurance market hardens with rising rates and reduced coverage, alternative strategies like the 831(b) Plan with Halo Coverage offer greater operational and financial stability. SRA 831(b) Admin, established in 2009, provides administration services for over 25 self-insurance policies and is trusted by more than 1,500 businesses. For more information, visit 831b.com.
