Captives
Group Captives are unique in the captive insurance industry — empowers companies to lower their total cost of risk, delivering tangible results that make a positive impact on their bottom line.
The majority of the group captives that we work with provide casualty coverage for their member-owners, including workers’ compensation (WC), general liability (GL), and automobile (auto) coverage, across a broad range of industries.
Heterogeneous and Homogeneous Group Captives
If your company is considering joining a group captive, there are advantages to joining either structure. Both types share the common objectives of providing members more control and long-term stability of their insurance costs, incorporate the same funding formula and unbundled structure, and typically offer the same coverages — workers’ compensation, general liability, automobile liability, and physical damage (although coverages are tailored by each captive for the membership’s unique needs). Ultimately, it comes down to which option complements your company best.
Heterogeneous Group Captives
Heterogeneous captives include member companies from diverse industries, including (but not limited to) select construction and manufacturing classes, retail, wholesale, distribution, and specialty trade contractors. The risk diversification in these captives achieves a greater spread of risk.
Homogeneous Group Captives
Homogeneous captives are comprised of member companies from the same industry. Examples include general contracting and construction, trucking/transportation, roofing, agri-business, oil and gas, and temporary employment agencies. Given that members have similar insurance and risk management needs and concerns, coverage and loss prevention programs can be customized to the captive’s specific industry.
Group Captives are a Mindset
Safety-Conscious-member-companies are stakeholders in their own insurance company, which gives them added incentive to lower costs by managing risk and improving workplace safety.
Accountable - For our members, this means going beyond standard safety procedures and taking an active role in managing and measuring risk. Successful members regularly attend risk management workshops, undergo risk control assessments (RCAs)*, and implement the latest methods and systems to make their companies safer.
Entrepreneurial- Joining a member-owned group captive allows your company to exert control over coverage decisions, claims processes, risk management, and more. The group captive members that find the most success in our model share entrepreneurial qualities — they’re motivated, forward-thinking, assertive, innovative, and embrace the risk-reward trade-off.
Is a Group Captive Right For You
While there isn’t a single, ideal profile for the companies that join a member-owned group captive, organizations with the following qualities typically find the most success in our model:
Long-term financial strength and stability.
Management teams committed to safety, with solid safety programs in place.
Loss histories that are better than average for their respective industries.
Annual casualty premiums of at least $250,000 (minimum of $100,000). Many group captive members have premiums between $1 to $5 million, with some as high as $25 million or more.
Industries Served
- Manufacturing and Distribution
- Construction
- Transportation
- Temporary Employment Agencies
- Retail
- Food and Beverage Production
- Hospitality
- Healthcare Services
- Agri-Business
- Oil & Gas Well Operations/Services