What is an 831(b) Plan?
The 831(b) Plan is a federally recognized tool that allows small to mid-sized businesses to set aside pre-tax funds to prepare for unexpected risks. Unlike traditional insurance, this plan lets you build a financial buffer for the risks you actually face.
- Adverse Media Coverage
- Lawsuits
- Business Interruption
- Traditional Policy Exclusions & Sublimits
- Audits
- Tariffs, Wars & Political Disruptions
- Data Breach & Cyber Crimes
- People & Leadership Risk
- Supply Chain Interruptions
- Warranties & Protection Plans
Example
A custom equipment manufacturer uses its 831(b) Plan to self-insure product warranties as well as enterprise-level risks. When a key component failed in the field, the company honored the repair under its in-house warranty, funded through the 831(b). In addition, when delays in incoming parts from overseas suppliers threatened production timelines, their commercial policy provided minimal coverage. The company relied on its 831(b) Plan to absorb the impact and maintain delivery commitments.
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When to Consider an 831(b) Plan
From stages of growth to strategic transitions, there are certain inflection points where financial risks increase and opportunities to protect profits become more urgent.
- More than $2Mil in gross revenue
- Independently owned
- Values Risk Mitigation
- Typically working on the business, not in the business
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Do I Qualify
SRA has created a simple assessment to see if you may qualify to strengthen your business through an 831(b) Plan.
Why it Matters
Benefits for My Business
PRIMARY: Risk Management:
Protect against low-frequency, high-impact events traditional insurance doesn’t cover.
SECONDARY: Tax Deferral:
Reduce taxable income by setting aside reserves in a compliant and structured way.
With You From the Start
How You’ll Work With Us
From Day 1 to Year 10, we’re in this with you.
Client Success Stories
Real Businesses. Real Outcomes.
Hear More from Trusted Experts
SRA helped us structure a plan that kept our cash flowing during a 5-month equipment shortage. We didn’t lay off a single person.
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