Why Your Business Should Rethink Insurance – Group Captive Features and Benefits 

Aug 2020

If you ask any business owner what they do, you may want to be prepared to sit down and listen for a while. Business owners wear many hats. One of the most important hats is the one that ensures they are protecting their company with the proper risk management insurance platform. Knowing what type of insurance and the levels of coverage a business needs most often requires a sit down with a trusted insurance Advisor. When you run a business, you assume responsibility for the well-being of a range of people, from employees to customers. Your business activities have the potential to affect these stakeholders in serious and costly ways, and business insurance protects you financially from some of these consequences.

Most business owners evaluate their insurance needs based on the potential risks of the business. The risks of business vary with the type of business, location, and mode of operation. However, the trends in risk management in the business world are constantly changing.

There are different types of business insurance, and business owners usually adopt the most suitable one for their business. However, the evolution and rapid acceptance of group captive insurance platform solutions are causing a significant turn in the usual trend. The captivating features and amazing benefits of a group captive insurance program are convincing a lot of business Owners to rethink insurance. 

What Is Group Captive Insurance? 

Group captive insurance provides the same coverage as traditional insurance, but it works differently via the benefits of:  stability, control, safety and financial opportunity. It is a unique type of insurance that allows business owners with a similar mindset to form their own insurance company and leverage multiple features and platforms. 

In other words, group captive is a membered-owned insurance company that comprises various businesses and business Owners with a similar mindset, goals, and business risks. This type of insurance allows you and other Members to be in firm control of collective and individual risks. 

Benefits of Group Captive Insurance 

Group captive insurance programming offers amazing benefits to business Owners, and therefore offers many compelling reasons you should rethink your insurance. Some of the vital benefits of group captive insurance include the following:

  • It gives business owners control over their collective risk management program. 
  • Next, is the major differentiator of market stability.  In other words, as a business Owner you are no longer on the roller coaster of the traditional insurance industry with insurance carriers exiting the market, spiking premiums, new underwriting trends, etc.
  • Group captive insurance comprises business owners with a similar mindset; thus, it brings best in practice sharing and networking. 
  • Group captive insurance promotes group support and risk-sharing. 
  • It improves safety and loss control culture among members and enhances profitability. 
  • Group captive insurance promotes long-term business strategy among members with a similar goal. 
  • It gives you the benefit of ownership. In this case, you are not renting insurance; you and other members own it. You are both a Policyholder and a Shareholder of the company.
  • Improved cash flow and collective mitigation of risk.  

Is your Company a Good Fit for Group Captive?

Companies who are a good fit for Group Captive share these traits:

  • Best in class leader in the Construction, Manufacturing or Distribution industry
  • Strong safety culture
  • Entrepreneurial spirit
  • Looking for marketplace stability for their insurance program
  • Interested in having more control of their insurance program
  • Seeking the financial opportunity of return on their premium investment
  • Peer to peer best practice sharing
  • Long term / conservative view
  • # of Employees:  50 – 500
  • Average Annual Sales:   $10M to $150M
  • Typical Industry:  Construction, Manufacturing, Distribution, Automotive
  • Lines of Policy Coverage:   Automobile, General Liability & Workers’ Compensation
  • Aggregate Annual Premium:   $150,000 or more
  • Typical Culture:   Best in Class, Safety & Loss Control Focused, Entrepreneurial

Overall, risk management is an essential part of any business. As a business Owner, you assume the responsibility of managing your risk, and that of others, including employees and stakeholders. However, group captive presents a valid opportunity for business owners to have control over their risk management.   

If you’d like a free consultation to see if your company is the right fit for Group Captive, contact Jimmy Waller at Waller Insurance:  863-944-7702 / jwaller@wallerpartners.com.   Waller is the premier expert in the Florida market when it comes to group captive alternative risk management programming.   Be bold …. Think Waller!


Watch this video to learn why Trans-Phos Chose Group Captive Insurance