Author, Kevin Howard, Account Executive, Rancho Mesa Insurance Services, Inc.

As a business owner, you might hear about group captive insurance but are unsure whether or not it would be a fit for your business model. With auto rates rising dramatically and property and casualty premiums poised to shift upwards over the next 5 years, exploring a group captive could benefit your business. A group captive could help you potentially recover more than 60% of your premiums, generating substantial returns on your investment in safety.

So, how do you know if a group captive would be the right fit for your business? Below are three signs it is time to consider a captive option.

1 . Combined Premiums – Your annual premiums for workers’ compensation and commercial auto combined exceeds $100,000.

Many group captives have minimum premiums in the $250,000 to $500,000 range; however, Rancho Mesa represents group captives with minimums as low as $100,000.

2. Risk Controls – You have invested in risk controls in order to prevent or reduce losses and you would like to maximize your return on that investment.

Some examples of controls could be fulltime safety coordinators, GPS/telematic systems installed in all owned autos, pre-employment physicals and/or drug testing, and mandatory stretching or ergonomics, to name a few.

3. Performance – Your business continues to operate as a profitable risk for your insurance company partners.

If the business’ loss ratio is lower than its peers in your industry and your track record looks great, a group captive may be the right fit.

If the above list describes your business, a group captive could be a great long term solution.

To learn more about a group captive option, listen to our StudioOne™ Podcast Episode 86 where Rancho Mesa’s President Dave Garcia discusses captive insurance with Doug Hayden, Senior Vice President of Captive Resources.

If you have questions about if group captive insurance is right for your business, please do not hesitate to contact me at (619) 438-6874 or khoward@ranchomesa.com.