A group captive is an alternative insurance model in which multiple organizations join to form their own insurance entity. This structure provides greater control over costs, claims management, and risk mitigation strategies. Here’s why captives are gaining traction in the social services sector:
1. Cost Savings & Stability Unlike traditional workers’ comp insurance, where premiums are dictated by external carriers, captives allow members to take control of their costs. Members pay premiums based on their actual loss experience, not the industry average, which can lead to significant savings over time.
2. Greater Control Over Claims Management With a captive, members have direct influence over how claims are handled. This leads to more efficient claims resolution, reduced litigation expenses, and improved outcomes for injured employees.
3. Enhanced Safety & Risk Management Captive members are incentivized to prioritize workplace safety because better loss experience translates to lower costs. Many captives offer customized risk management programs, training resources, and data-driven insights to help organizations proactively reduce injuries.
4. Transparency & Financial Benefits Traditional insurance carriers retain any unused loss funds, but in a captive, those funds are returned to members when claims are well-managed. This creates a financial incentive for organizations to focus on strong safety programs and efficient claims handling.
5. Long-Term Sustainability By joining a captive, social services organizations can break free from the volatility of the traditional insurance market. This stability allows for better financial planning and long-term cost predictability.
Is a Captive Right for Your Organization?
A group captive may be a great fit for your organization if:
- Your workers’ comp premiums are consistently high despite a strong safety record.
- You want more control over claims management and risk mitigation strategies.
- You are looking for a long-term solution to stabilize costs and improve financial outcomes.
- You are committed to a culture of safety and proactive risk management.
Hearten was built for social services organizations seeking a smarter, more sustainable way to manage workers’ compensation costs. If you’re ready to explore whether a captive is the right fit for your organization, reach out today to learn more about Hearten’s member-owned approach to workers’ comp insurance.
