Paying too much for commercial insurance with too little control? Captive insurance gives Arizona businesses a smarter alternative — and Bespoke Insurance Groups builds the program around you.
Your Insurance Premium Goes Up. Your Coverage Stays the Same.
That’s the deal most businesses quietly accept every year. It doesn’t have to be.
Captive insurance flips the model. Instead of paying a commercial insurer and hoping for the best, your business owns its own insurance structure — and keeps what it doesn’t spend.
What Is Captive Insurance?
Captive insurance is when a business creates its own insurance entity to cover its specific risks instead of buying coverage from a commercial insurer. The business pays premiums into its own captive, controls how claims are managed, and keeps unspent premium as profit. It’s insurance ownership, not just insurance buying.
Think of it like renting vs. owning a home. With commercial insurance, you pay every month and build no equity. With a captive, the premiums you pay stay in your structure — and work for your business.
It’s not a loophole. It’s a legitimate, IRS-recognized risk management strategy used by thousands of U.S. companies.
Is Captive Insurance Only for Large Corporations?
Captive insurance works for small and mid-sized businesses, not just Fortune 500 companies. The structure scales to fit the business. A company generating $2M+ in annual revenue with consistent, manageable risk is often a strong candidate. Size matters less than risk profile and financial discipline.
Many Arizona business owners assume captives are out of reach. That assumption costs them money.
Bespoke Insurance Groups specifically designs captive programs for businesses across the Phoenix metro area — including smaller enterprises that commercial insurers routinely overcharge.
What Does a Captive Program Actually Cover?
The short answer: most of what commercial insurance covers — structured differently.
Common coverage areas include general liability, workers’ compensation, professional liability, property damage, and industry-specific risks. Bespoke builds the program around the actual risk profile of the business, not a generic industry template.
How Does a Captive Save Money?
A captive saves money in three ways: it eliminates insurer profit margins built into commercial premiums, it returns unused premiums to the business, and it rewards good risk management with lower long-term costs. Over time, businesses with strong safety records and low claims accumulate real capital inside their captive.
Commercial insurers price for the average risk in your industry. If your business runs tighter than average — fewer accidents, fewer claims, better controls — you’re subsidising everyone else’s losses.
A captive stops that. Your premiums reflect your risk, and your discipline pays off.
What Does the Setup Process Look Like?
Setting up a captive isn’t a weekend project. It involves a feasibility study, regulatory approval, and ongoing financial management.
Bespoke Insurance Groups handles the full process — from initial assessment through program design, regulatory compliance in Arizona, and long-term management. Their team doesn’t hand over a template. They build the structure around each client’s specific industry, risk profile, and financial goals.
Is Captive Insurance Legal and Regulated?
Yes. Captive insurance is fully legal, federally recognized, and regulated at the state level. Arizona is a domicile state for captive insurance, meaning businesses can form and operate captives under Arizona law with oversight from the Arizona Department of Insurance. It’s structured, audited, and compliant.
The IRS has clear guidelines on captive structures — specifically IRC 831(b), which applies to small captives. Working with an experienced advisor like Bespoke ensures the program is set up correctly from day one.
What Kind of Businesses Benefit Most?
Industries with predictable, manageable risk tend to benefit most from captive structures. These include:
Construction — high premium costs, strong safety record potential Healthcare — professional liability exposure that commercial insurers overprice Manufacturing — workers’ comp and property risk that rewards good controls Professional Services — E&O coverage with low actual claims history Transportation — fleet liability that scales with strong safety programs
If your business consistently pays high premiums but files few claims, you’re the ideal candidate.
Why Bespoke Insurance Groups?
Bespoke Insurance Groups is based in Phoenix and works with businesses across Arizona and beyond. Their focus is narrow and intentional — captive insurance only, not a menu of generic products.
Every program they build starts with a real assessment of the business, its risks, and its financial goals. The result is a structure that fits, not one that’s been repurposed from another client’s program.
Ready to stop renting your insurance and start owning it?
Contact Bespoke Insurance Groups for a consultation.
Phone: +(1) 602-427-5643 Email: info@bespokeinsurancegroups.com Address: 202 E Earll Dr, Suite 360, Phoenix, AZ 85012