An 831(b) Plan, also known as a microcaptive insurance plan, is a strategic risk-management solution designed for established businesses that face risks not fully covered by traditional insurance.
Rather than replacing commercial insurance, an 831(b) Plan works alongside it—helping businesses insure underinsured or uninsured risks in a compliant, structured way.
Businesses That May Be a Good Fit
An 831(b) Plan is often well-suited for businesses that:
- Generate consistent revenue (commonly $2M+ annually)
- Have stable operations and predictable cash flow
- Face insurance gaps due to exclusions, limits, or high deductibles
- Want a more intentional approach to risk management
Eligibility is driven by a company’s risk profile and financial maturity, not a specific industry.
When to Consider an 831(b) Plan
Many business owners explore an 831(b) Plan when:
- Their business is growing or evolving
- Traditional insurance no longer aligns with operational risk
- Emerging risks (cyber, supply chain, business interruption) are increasing
- They want to formalize long-term risk planning
If traditional insurance leaves meaningful exposure, an 831(b) Plan may provide an additional layer of protection.
How to Determine Eligibility
Because every business is different, the best way to determine fit is through an eligibility review that evaluates revenue, risk exposure, and insurance gaps.
Check your eligibility
An 831(b) Plan is not a one-size-fits-all solution, but for the right business, it can be a powerful part of a comprehensive risk strategy.