Our Houston-based insurance brokerage focuses on hard-to-place, risky, middle market companies. Outsourced Risk Managers levels the playing field, leverages our resources, and assists you from a place of sincerity. Our goal is to give you better coverage, better pricing, better service, and more resources as your risk managers. We look forward to helping protect your company.
Insurance Broker Services
Establishing a Captive Insurance Agency
As a business owner, securing insurance coverage is essential–especially if you run a higher risk company in the commercial real estate, oil field service and exploration, and construction industries.
Having said that, many business owners in the U.S., Canada, Mexico, and even other countries, feel that established insurance companies attempt to take advantage of them. Entrepreneurs across various industries are weary of
- Costly premium payments
- Narrow coverage
- Convoluted policies couched in legalese
- Delays in processing of claims
- Denial of claims
As an entrepreneur owning a high-risk business, insurance premiums are a necessary expense to protect your company. When insurance companies do not honor their commitments, it can be a significant source of frustration and stress.
The business insurance brokers at Outsourced Risk Managers believe that the source of misunderstanding is the uneven access to information and expertise regarding insurance. This is why we aim to level the playing field by educating people on insurance instruments as well as offering our expertise as brokers and consultants to help people get better insurance.
Captive Insurance for Your Company
One of the services we offer at Outsourced Risk Managers is guiding entrepreneurs in implementing a captive insurance program. Captive Insurance is a form of self-insurance in which a company creates its own insurance company in order to provide coverage for its own risks. To do this, a company has to form a separate legal entity that must be duly licensed by regulators.
Forming Captive Insurance programs can be cumbersome as it requires expertise in different fields such as actuary, local, and international regulatory laws on insurance and taxation. Our insurance experts will guide you every step of the way.
Benefits of Captive Insurance
We can begin the process of establishing your captive insurance program once our initial consultation and feasibility study determine that captive insurance is appropriate for your business. Companies that have captive insurance in place can benefit from the following:
By establishing your own Captive Insurance agency, your company can benefit from lower insurance premiums that offer more customized coverage compared to traditional insurance policies.
Your Captive Insurance agency can be incorporated such that it offers tax breaks to your parent company. Simply put, your parent company seeks to deduct the premium it pays to your captive insurance company. Ideally, your captive insurance company is located in a state with lower taxes than your parent company so that tax benefits are realized when your captive insurance company declares the premiums it collects.
Captive Insurance can be customized to meet the specific needs of the insured. This is especially useful for businesses that require specialized coverage due to their higher risk that cannot be serviced by traditional third-party insurers.
Prevent Bad Faith Insurance
Since the captive insurance company is owned by the parent company, this significantly lowers if not eliminates the possibility that the insurer will renege on its obligations.