Captive Programs
Stop renting your insurance. Start owning it.
A captive insurance program lets qualified businesses insure themselves through a company they help own — keeping the underwriting profit and investment income a traditional carrier would otherwise pocket. For the right business, it turns insurance from a sunk cost into a controllable asset.
The basics
What is a captive insurance program?
A captive is a licensed insurance company owned by the businesses it insures. Instead of paying premium to a traditional carrier and never seeing it again, you pay into a structure you co-own. Money set aside for your claims that you don't end up needing — plus the investment income it earns — comes back to you.
Most mid-market businesses join a group captive: a member-owned company made up of similar, safety-minded businesses that pool their risk. Each member funds its own losses, a shared layer absorbs larger claims, and reinsurance caps catastrophic events — so one bad year for any single member can't sink the group.
Most commonly used for high-frequency, controllable lines: Workers' Compensation, General Liability, and Commercial Auto.
How it works
Where your premium actually goes
You pay premium
Your premium is set by your own loss history and exposures — not the swings of the open market.
It funds your captive
Premium is split into funded layers: your own loss fund, a shared layer with other members, and reinsurance for catastrophic losses.
Claims get paid
Losses are paid from your loss fund first, then the shared layer, then reinsurance — in that order.
You keep the surplus
Whatever's left in your loss fund at year-end, plus investment income, is returned to you as dividends.
A typical premium, broken down
In a captive, the largest piece is your money, set aside to pay your own claims — and refundable if you don't use it.
The long game
How it lowers your cost over time
For an eligible, safety-focused company, a captive compounds in your favor year after year:
- You keep underwriting profitIn a guaranteed-cost policy, a good year means the carrier keeps the difference. In a captive, that money returns to you.
- Your premiums earn investment incomeReserves held for future claims are invested — and that income benefits the owners, which is you.
- Pricing follows your performanceAs your safety record improves, your loss costs fall. You're rewarded directly instead of being averaged in with the wider market.
- You're insulated from market cyclesWhen the broader market hardens and rates spike, captive members feel far less of it.
Illustrative only. Actual results depend on your loss experience, the captive's performance, and market conditions.
Eligibility
Is your business a fit?
Captives reward companies that are financially stable and serious about safety. You may be a strong candidate if you:
Spend a minimum of $250K a year on premium across lines like workers' comp, general liability, and commercial auto.
Run a safer-than-average operation with better loss experience than your industry peers.
Are financially stable and able to take a longer-term view of your cost of risk.
Want control and transparency over where your insurance dollars actually go.
Industries that fit well: contractors, manufacturers, distributors, transportation, and other operations with controllable risk. Not sure where you stand? That's exactly what we'll figure out together.
Questions
Captive programs, answered
What is a captive insurance program?
A captive is a licensed insurance company owned by the businesses it insures. Instead of paying premium to a traditional carrier and never seeing it again, you pay into a structure you co-own — and money set aside for claims you don't use, plus the investment income it earns, comes back to you.
How does a group captive work?
Most mid-market businesses join a group captive: a member-owned company of similar, safety-minded businesses that pool risk. Your premium funds your own loss fund, a shared layer for larger claims, and reinsurance for catastrophic losses. Claims are paid from your loss fund first, and any surplus is returned to you as dividends.
How does a captive lower my costs over time?
In a guaranteed-cost policy, the carrier keeps the profit in a good year. In a captive, that underwriting profit and the investment income on your reserves return to you. As your safety record improves your loss costs fall, and you're insulated from market-wide rate spikes — so your total cost of risk can trend down year after year.
Is my business eligible for a captive?
Captives fit financially stable, safety-focused companies that spend a minimum of about $250,000 a year on premium across lines like workers' compensation, general liability, and commercial auto, with better-than-average loss experience. Contractors, manufacturers, distributors, and transportation operations are common fits.
What are the risks of a captive?
A captive involves a capital commitment and real risk — including the possibility of additional assessments if losses exceed funding. It rewards companies that control their risk well, but it isn't right for every business, which is why we review your numbers honestly before recommending it.
What types of insurance can go into a captive?
Captives are most commonly used for high-frequency, controllable lines — workers' compensation, general liability, and commercial auto — where strong safety performance directly reduces losses and increases your returned dividends.
How fast can I get a certificate of insurance?
We strive to issue certificates of insurance in under an hour during business hours — and we're reachable for emergency or after-hours certificates when a job or contract can't wait.
See whether a captive could work for you.
We'll review your premium, loss history, and operations — and tell you honestly whether a captive makes sense. No pressure, no obligation.
Captive insurance involves a capital commitment and risk, including the possibility of additional assessments if losses exceed funding. It is not the right solution for every business. The figures and examples on this page are illustrative and are not a guarantee of savings or any particular outcome. Coverage, eligibility, structure, and tax treatment vary by program, carrier, and state requirements. This page is informational only and is not an offer of insurance or financial, tax, or legal advice.