Captive Insurance
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WHY CHOOSE US
We're Best Captive Insurance Company.
Arizona’s top insurance company, providing trusted coverage and peace of mind.
5+ Years of Experience
With over 5 years of experience, we provide expert insurance solutions tailored to your needs. Trust us for reliable coverage and exceptional service in Arizona.
Easy to claim & 100% Secure
We offer a hassle-free claims process with 100% secure coverage. Experience peace of mind with insurance you can trust.
More Facilities, More Benefit
Enjoy more facilities and greater benefits with our comprehensive insurance plans. We prioritize your security and convenience.
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Bespoke Insurance Company
At Bespoke Insurance Groups, we specialize in providing tailored captive insurance solutions for businesses in Phoenix, Arizona, and beyond. With a deep understanding of risk management and financial strategies, we help businesses take control of their insurance needs through customized captive programs.
What is Captive Insurance & Why is it Growing in Popularity?
Captive insurance is a form of self-insurance where a company creates its own insurance subsidiary to cover its specific risks. Instead of purchasing insurance from third-party providers, businesses establish their own captive insurance company to underwrite their risks, offering more control, cost savings, and tax advantages.
This approach gives businesses greater control over their coverage, claims management, and costs while also offering potential tax benefits and improved cash flow. Captive insurance is growing in popularity due to rising premiums in the commercial insurance market, increasing regulatory flexibility, and the desire for more customized risk management solutions. Additionally, companies can benefit from underwriting profits and investment income that would otherwise go to traditional insurers. As businesses seek more cost-effective and tailored insurance solutions, the captive model continues to gain traction across various industries.
Benefits of the Captive
Insurance Model
The captive insurance model offers several advantages for businesses looking to take control of their risk management and insurance costs.
Cost Savings
By eliminating traditional insurance carriers, companies can reduce administrative fees, overhead costs, and premium markups.
Customized Coverage
Businesses can tailor policies to meet their specific risks, ensuring better protection than standard commercial insurance options.
Improved Cash Flow
Captives allow companies to retain premiums and invest them, creating potential for higher returns and better liquidity management.
Stability in Insurance Costs
Unlike traditional insurance, where premiums fluctuate due to market conditions, captives provide more predictable and stable pricing.
Claims Control
In captive insurance allows companies have greater control over claims handling, leading to faster settlements and reduced disputes.
Tax Efficiency
Depending on regulatory compliance, captives may offer tax advantages, such as deductible premium payments and tax-deferred reserves.
Experience The Difference
How Does Captive Insurance Work?
A captive insurance program works by allowing a business to create its own insurance company to cover specific risks. The business pays premiums to the captive, which is owned and controlled by the parent company. This captive can develop customized policies tailored to the company’s unique needs, handle claims directly, and retain any profits or unused premiums. By doing so, the business gains greater control over its insurance costs and risk management strategies.
One of the significant advantages of captive insurance is the potential tax benefits. Businesses can deduct premiums paid to the captive as business expenses, reducing taxable income. Additionally, under Section 831(b), small insurance companies can elect to be taxed only on their investment income, leading to substantial tax savings.
Captive health insurance can be particularly beneficial for companies that have implemented effective risk management strategies. By pooling resources and sharing risks, businesses can achieve more stable and predictable healthcare costs compared to traditional group health insurance.
Disadvantages of Captive Insurance: While captive insurance offers numerous benefits, it also comes with certain disadvantages. These include the need for significant capital investment, complex regulatory compliance, and administrative responsibilities. Additionally, there is a risk that the captive may not perform as expected, potentially leading to financial losses.
As captive insurance providers, Bespoke Insurance Group wants to show you how you can create captive insurance for your company.
Who is a Good Fit for
Captive Insurance?
Businesses that face high insurance premiums—especially those in industries with higher-than-average risks—may find that a captive can reduce costs and provide better coverage tailored to their specific needs.
Companies with a stable or predictable loss history are better positioned to benefit from captive insurance. A consistent loss record can lead to lower premiums and amore favorable risk profile.
Organizations looking for greater control over their insurance programs and claims processes will find captives appealing. This control can lead to improved risk management strategies and enhanced responsiveness to claims.
Businesses that operate in sectors with unique or complex risk exposures—such as construction, healthcare, or technology—may benefit from the customization that captives offer.
Captive insurance is most beneficial for companies willing to make a long-term investment in risk management. Establishing a captive requires an upfront commitment, but the long-term benefits can outweigh initial costs.
Companies must have the resources to navigate the regulatory landscape associated with captive insurance. This includes understanding the legal requirements in their chosen jurisdiction, as well as ongoing compliance obligations.
Businesses considering a captive should have a strong financial foundation, as captives require capitalization and ongoing funding to survive and thrive.
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Testimonials
What Client Say
Helping businesses stay compliant and secure.
Mark Hughes
Businessman
Working with this team has been a game-changer for our business. Their expertise in captive insurance and risk management has helped us save costs while ensuring we have the right coverage. Highly recommend!
Ester Zee
Manager
We struggled to find an insurance provider that truly understood our industry’s risks. Their tailored approach and hands-on support have given us peace of mind knowing we’re properly covered.