Bender Insurance Solutions

Alternative Risks & Captive Capabilities

Preparing you today for what lies ahead tomorrow

The Bender Alternative Risk Team (ART) has nearly 20 years of experience in providing California’s Employers with alternatives to traditional insurance offerings. Captives, Self-Insurance and High Deductibles can be a very good way to manage the long-term cost of risk while providing an Employer with much needed stability, regardless of market cycles, especially in times like these.

  • Alternative Risks & Captive Capabilities

    Alternative Risks & Captive Capabilities

    Why choose a Bender ART Program?

    • Lower Ultimate insurance costs
    • Insulation from the “ups and downs” associated with market cycles
    • Greater control of their insurance
    • Employer specific Loss Control & Risk Management tools
    • Enhanced Claims Management & lower claims costs through the unbundled Claims Services approach
    • Address potential coverage or administration issues
    • A or better ratings on all Bender ART Programs

    Types of Bender ART Programs:

    • Group Captives – Heterogeneous or homogenous
    • Self Insurance for Workers’ Compensation
    • High Deductible Options
    • Programs for Workers’ Compensation, Auto, GL and Health Insurance
    • Association based ART Programs

    Captives Defined – A Captive is an Employer Owned Insurance Company that provides insurance to and is controlled by its Employer owners.

    Let Bender Insurance Solutions’s ART Team analyze your current insurance program to see if a Captive or other ART Program is right for you and your company.

  • 831(b) Captives

    831(b) Captives

    Although purchasing traditional insurance from a third-party company is a common choice among businesses, other options are also available. In some cases, these alternatives can provide superior benefits. One such alternative involves forming a Captive.

    A Captive is an insurance company your company forms, owns and manages. Forming a Captive is an alternative to purchasing standard commercial insurance that can provide your business with a number of important advantages, including:

    • Reduced overall costs
    • Customized coverage
    • Increased control over coverage
    • Wealth accumulation
    • Asset protection

    Captives can also provide your company with valuable tax benefits through an election allowed under section 831(b) of the Internal Revenue Code. To qualify as an 831(b) Captive, your insurance company must receive less than $1.2 million in premiums each year. The company can then file its election along with its first tax return.

    Benefits of Forming an 831(b) Captive

    If your business forms an 831(b) Captive, it can provide you any and all types of commercial coverage your business may need, including:

    • Professional Liability
    • Directors and Officers Liability
    • General Liability
    • Auto Liability
    • Property Insurance
    • And more.

    All premiums paid to the company are tax deductible for your business. In addition, under section 831(b), the Captive itself must pay tax only on its investment income. All premiums received are tax free, as long as the annual total doesn’t exceed $1.2 million.

    Contact Bender Insurance Solutions

    The rules surrounding the formation of an 831(b) Captive can be complicated and confusing for businesses. We understand all of these rules and regulations thoroughly, and all of our programs have ratings of A or better. Our team can analyze your company’s risks, needs and current insurance coverage in order to determine whether your business could benefit from forming an 831(b) Captive. Contact us today to get started!

  • Large Deductibles / SIRs

    Large Deductibles / SIRs

    With the cost of insurance rising continuously, many businesses are actively trying to reduce their costs through a number of methods. Two such methods used to reduce the cost of coverage are large deductible policies and self-insured retention (SIR).

    Large Deductible Policies

    Large deductible policies are simply insurance policies with larger-than-average deductibles. Because the deductible is so large, the cost of premiums for these policies is considerably lower. However, if a covered claim occurs, your business will be responsible for paying the full amount of the claim up to the deducible. For example, if you purchase a property insurance policy with a $3,000 deductible and your business incurs a $4,000 covered loss, you will pay $3,000 toward the total and the insurance company will pay only $1,000.

    Self-Insured Retention (SIR)

    Self-Insured Retention, or SIR, is similar to purchasing large deductible policies in that it involves the use of higher-than-average deductibles. However, whereas the high deductible method allows the insurer to deal with all claims below and above the deductible level, the SIR method requires the business itself to handle any claims that occur below the self-insured retention.

    For example, if you have an SIR of $7,000, any claims occurring below that level will be received and processed by your business. Only losses exceeding $7,000 will be reported to and processed by your insurer. This method further lowers the cost of coverage by alleviating some of the insurer’s duties. In addition, because losses below the SIR will not be reported to your insurer, they won’t be included in future premium calculations.

    Using These Methods

    If you are interested in purchasing large deductible policies, the SIR method or any other type of alternate insurance strategy, contact Bender Insurance Solutions today to discuss your options. We offer a number of alternative risk programs, all of which have high ratings, and we can help you design an insurance strategy that meets your business’s unique needs.

  • Rent-a-Captives


    A Captive, which is an insurance company your business owns and manages, is a common alternative to traditional commercial insurance that can offer your company a number of advantages. Unfortunately, forming your own Captive requires significant financial investment and planning.

    For many businesses, forming a Captive is worth the time and money. However, if launching your own Captive is too large of an undertaking for your business at this time, you can still enjoy many of the same benefits through a Rent-a-Captive.

    What is a Rent-a-Captive?

    A Rent-a-Captive is an arrangement in which your company “rents” a captive insurer so that you can enjoy all of the benefits of owning a captive without as much financial commitment or hassle.


    Some of the benefits your business will enjoy with a Rent-a-Captive arrangement include:

    • Opportunities to earn investment income.
    • Lower overall insurance costs.
    • Greater control over your coverage.
    • Premiums paid are tax deductible.
    • No need to start or manage your own insurance company.

    Contact Bender Insurance Solutions

    Setting up a Rent-a-Captive arrangement can be difficult if you don’t have experience with this type of insurance. Fortunately, our team has more than 80 years of experience in the insurance industry, and we understand all of the intricacies of these unique alternative risk strategies.

    All of our alternative risk programs are rated A or better, and we know how to identify the strategies that will work best for your company. After reviewing your company’s current coverage, unique needs and risks, we can help you determine the best course of action for your business’s future. We can also provide you with continuing guidance and assistance as you put your plans into action. Contact us today to discuss your business and find out whether a Rent-a-Captive arrangement is right for you.

  • Sponsored Segregated Cell Captives

    Sponsored Segregated Cell Captives

    Captives are an alternate risk management strategy that can provide a company with many advantages over traditional insurance coverage. Many types of captives exist, and each structure has its own advantages and disadvantages. One of the more complex captive structures in existence is the sponsored or segregated cell captive.

    What is a Segregated Cell Captive?

    A segregated cell captive is a special type of captive that separates itself into multiple internal segments, or “cells.” Each cell is protected from any claims made by another cell’s creditors. Segregated cell captives are most commonly used in rent-a-captive arrangements, but they may also be used by the same company in order to segregate subsidiaries or lines of risk.

    Benefits of Segregated Cell Captives

    The main benefit of a segregated cell captive is the protection each cell within the captive receives from external creditors. This benefit is unique to segregated cell captives and does not apply to other types of captive arrangements. However, if you utilize this arrangement, you will also enjoy all of the other general benefits of captives, including:

    • More control over your coverage.
    • Opportunities to earn interest on investments.
    • Tax benefits.
    • Protection from the volatility of the external market.

    Contact Bender Insurance Solutions

    Segregated cell captives can be complex, especially for beginners. Fortunately, our experts understand all of the rules and regulations surrounding segregated cell captives. We can review your current coverage structure, provide you with advice and help you determine whether a segregated cell captive is the right insurance strategy for you. We can also help you implement this strategy so that you reap the maximum possible benefit at all times. Call Bender Insurance Solutions today to discuss your unique needs and learn more about our services.

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