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Group Captive Insurance: Take Control of Your Business Risk

Take charge of your insurance, reduce costs, and unlock long-term financial benefits with a captive insurance program.

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What is captive insurance?

A group captive insurance program is a powerful risk management strategy that allows businesses greater control over their insurance costs by becoming an owner of a specialized insurance program. Unlike traditional insurance, where premiums are forfeited to a third-party provider, a group captive program enables businesses to share in underwriting profits and investment income.

While policies and coverages remain similar to standard insurance, group captive members benefit from:

  • Improved risk control
  • Efficient claims handling
  • Enhanced dividend potential

This structure helps businesses proactively reduce losses and stabilize long-term insurance costs.

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Who Benefits from Group Captive Insurance?

Businesses with significant insurance costs, especially those with strong risk management practices, can benefit from captive insurance programs. Key benefits include:

Cost Stability in a Volatile Market

Financial Incentives for Safe Practices

Stronger Risk Management Controls

How Does a Captive Program Work?

When your group maintains a strong claims record, you benefit from potential dividends, turning insurance from a necessary expense into a financial advantage. This incentivizes proactive risk management strategies, as fewer claims contribute to the overall success of the group.

1. Risk Assessment & Qualification

The journey into captive insurance starts with a comprehensive risk assessment where our team evaluates:

  • Business operations and exposures
  • Claims history and loss trends
  • Current insurance structure and costs

If a group captive program is a good fit, you’ll join an established captive managed by experienced professionals who oversee compliance, claims, and financial operations.

2. Captive Insurance Policy Issuance

Once enrolled, the captive insurance company issues policies to cover:

  • Workers’ Compensation
  • General Liability
  • Commercial Auto

Your premiums contribute to the group’s funding, allowing you to benefit from underwriting profits when strong risk management reduces claims.

3. Claims Management & Financial Stability

The captive works closely with insurance carriers and service providers to ensure:

  • Efficient claims resolution
  • Fair and strategic claims handling
  • Financial stability through proper reserves

Unused premium funds remain within the captive, contributing to the group’s financial strength and creating a more stable insurance cost structure over time.

Benefits of Captive Insurance for Your Business

Beyond financial advantages, captive insurance programs provide businesses with greater control over risk management and cost stabilization. It’s an opportunity to rethink insurance as a strategic asset rather than just an expense.

Save More, Spend Smarter

  • Implement strategic risk management, leading to long-term savings and potential financial returns
  • Gain greater insight and transparency in claims handling

Gain Influence Over Risk & Cost

  • Instead of premiums going entirely to a third-party insurer, captive members share in underwriting profits and investment income.
  • Create long-term financial stability and lower insurance costs.

Achieve Long-Term Cost Stability

  • Avoid the pricing volatility of the traditional insurance market.
  • Achieve financial predictability and stability, no matter market conditions.

Turn Insurance Into a Business Asset

  • Captive insurance is more than just protections – it’s a long-term strategy
  • Strengthen you business, stabilize costs, and drive financial growth

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A group captive is an insurance program where businesses join together to self-insure, giving them more control over costs and claims management while benefiting from underwriting profits.

By reducing claims and managing risks effectively, businesses in a group captive can receive dividends from unused premiums and benefit from more stable long-term insurance costs.

Businesses with strong risk management practices, a good claims history and a minimum combined premium of $100,000 are ideal candidates for a group captive.

Most group captives cover Workers’ Compensation, General Liability, and Commercial Auto insurance, but some offer additional coverage options depending on the group’s needs.

Joining a group captive starts with a risk assessment to determine eligibility. Contact us to see if a captive is the right fit for your business.

Get Started with a Captive Insurance Program

A group captive insurance program isn’t just an insurance policy—it’s a powerful financial strategy that helps business owners reduce costs, manage risks effectively, and build long-term resilience.

McKnight Insurance specializes in helping businesses explore captive insurance solutions. Contact us to determine if a group captive is the right fit for your company.

McKnight Insurance Services Independent Agency in Mansfield Texas

Get in touch with one of our team members for questions or quotes!

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