Jeremy Colombik, president of Management Services International, discusses common myths about the captive insurance industry. One common myth is that all captives are tax shelters. Captives do provide tax benefits, along with many other benefits such as increased risk awareness, better risk management, and better designed policies. Another myth is that all captives are offshore. Over the years, many states have passed captive laws due to the benefits captive insurance companies offer. One more myth is that captives do not provide additional coverages. In fact, coverages may be carefully tailored in a captive. Some feel that captives are not a good business decision; however, captives can be a great business decision if they are done for the right purposes. Finally, it is not true that only Fortune 500/1000 companies are good for captives. In fact, the majority of captives are owned by small-to-medium-sized business owners.