Could an ASA Captive Insurance Program Benefit You?

There is no doubt about it, right now we all feel the pain of soaring insurance costs, as well as higher deductibles, and in some cases the inability to get insurers to offer higher Umbrella limits. Add to that, Owners and General Contractors are requesting higher limits of coverage which makes the entire Risk Management process increasingly more difficult to manage and afford.

Is there a more cost-effective way to manage your insurance portfolio and reduce costs? The answer to that is- possibly. The reason for “possibly” is the fact that Captive Insurance Programs are not suitable or available to everyone. Yes, the goal of a Captive Insurance Program is to reduce costs and to streamline the cost of insurance premiums, while managing good loss control of systems and processes, but there are risks. There are also minimum requirements Captive Insurers require in order to even be considered.

For example, a Contractor will need Annual Premiums of $250,000 for Workers Compensation, General Liability and Commercial Auto on a combined basis. Additionally, there will be consideration regarding Loss History and E- Mod Rating.

In July’s Contractor’s Compass magazine, we published an article titled “Insurance Captives Grow in Popularity Among Contractors” which was authored by Greg Hess of AssuredPartners, an ASA Platinum Sponsor. We have attached the article to this memo, as it provides additional information regarding captive insurance programs.

We realize this concept will not meet the needs of every ASA member and a significant percentage of our membership may not qualify for consideration. However, we felt the need to inform you of these kinds of programs and if you feel you could qualify and have an interest in exploring the opportunity further, please contact Greg Hess at Greg.Hess@AssuredPartners.com You will be required to complete a more detailed Questionnaire prior to any final determination of acceptability, but the first step is to review whether or not this may even be a good fit for you.

Finally, we will also need a minimum number of participants to develop an ASA Captive Insurance Program and we will keep the membership informed as things progress with this initiative. If you have any questions regarding ASA’s role and the relationship with AssuredPartners, please feel free to reach out to me at rbright@asa-hq.com

Click here to learn more about insurance captives from AssuredPartners.

Sincerely,
Richard Bright
COO ASA