Captive Insurance


If your company pays $150,000 or more in combined premiums for worker’s compensation, general liability and automobile coverage annually, it may be a candidate for a Group Captive Insurance Program. To support our middle market clients, Cornerstone has partnered with the leading administrator of Group Captive Insurance Programs.

What is a
Group Captive Insurance Program?

The basic definition of a Group Captive Insurance Program is a company that is owned wholly by those who are insured within it. This means your company and others within the Captive own the insurance company that carries your commercial insurance. A captive management company administers your program. They, not you, provide the structure, accounting, legal, claims management and other functions necessary to operate.

Once only available to Fortune 500 companies, Captive Insurance Programs have gained momentum within mid-size companies. In fact, Captive Insurance Programs now exceed 50 percent of the total commercial insurance market. While still called “alternative” insurance, the growth of the Captive Insurance market suggests the popularity and pricing stability of these programs has reached mainstream status.

Group Captives are typically designed in one of two ways:

Homogenous – This type contains companies that are within the same industry. Commercial roofing companies, long haul trucking companies and general contractors are examples.

Heterogeneous – This type contains companies that have similar cultures but are within different industries. Distribution, Research and Retail are examples of this type.

What are the advantages?

Building ConstructionCaptive Insurance Programs offer several advantages over traditional liability insurance including:

  • Control over your insurance program
  • Underwriting profit retention
  • Investment income benefits
  • Claims management control
  • Reduced insurance overhead costs
  • Minimal administrative obligations

Companies within Group Captives are considered “best in class” because of the requirements to belong. This benefits everyone as shared learning helps raise the overall standards within the group.

Start a Captive Insurance Program

Your Cornerstone Producer will request several pieces of information in order to begin the process. These include:

  • Copies of your current financial statements
  • Copies of your current insurance policies
  • A five-year record of your exposure history
  • A five-year record of your loss history
  • A set of your company’s brochures

Most companies find the returns and stability of these programs far outweigh the initial complexity. Let a Cornerstone professional show you how a Captive Insurance Program can benefit your company today and into the future. Contact us at

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