Risk Management
Joining a Group Captive Insurance Program Builds the Business
$600K
Saved on Premiums over 3 Years
$350K
Returned in Interest & Dividends
$20M+
Increase in Bonding Capacity
Industry
Construction / Gen. Contractor
Employees
45
Entity
S Corporation
Ownership
Private
Location
Kansas City Metro
Challenge
Rising premiums eating into margins on a $75M construction business.
A mid-sized Kansas City general contractor with a $75 million construction business was using a national broker for P&C insurance. As premiums continued to rise, they came to Cornerstone seeking less expensive alternatives.
$75M
in annual construction revenue — enough scale to qualify for a group captive but too small for a standalone one.
What Is Group Captive Insurance?
A Group Captive is a company wholly owned by its insured members. Your business and others jointly own the insurance company carrying your commercial coverage — enabling better risk management, cost control, and tax benefits.
Solution
Joining a group captive of like-minded general contractors.
Cornerstone reviewed five years of the client’s insurance claims to get a full picture of their risk profile, then recommended joining a Group Captive:
1
5-Year Claims Review
Deep historical analysis of loss runs, mod rates, and risk exposures to build a clear performance profile.
2
Captive Placement
Matched the client with a Group Captive made up of other general contractors with strong safety records.
3
Profit Sharing
Members earn up to 40% of premiums back in interest and dividends when the group performs well.
Outcome
Nearly $1M in total financial impact.
Premium Savings
In three years, the client saved $600,000 on premiums and received $350,000 back in interest and dividends.
Bonding Capacity
Group Captive membership increased the client’s bonding capacity by more than $20 million, enabling pursuit of larger projects.
“
The captive didn’t just save us money — it increased our bonding capacity and let us bid on projects we never could have touched before.
— Client, General Contractor
Facing a similar challenge?
Let Cornerstone build a custom solution for your business.