Risk Management
Group Captive Rewards Business for Low Workers Compensation Claims
2,500+
Temporary Workers in High-Risk Jobs
Top Perf.
Rewarded vs. Being Subsidized
$5M
Annual Payroll Protected
Industry
Staffing / Manufacturing
Employees
20 FT + 2,500 Temp
Entity
S Corporation
Payroll
$5 Million
Location
Missouri
Challenge
A strong safety record subsidizing unsafe competitors’ claims.
A staffing firm placing workers in manufacturing and industrial environments could only find expensive workers comp options. Despite building a strong safety culture, commercial carriers lumped them with all staffing firms — forcing top performers to subsidize unsafe competitors and squeezing margins.
2.5K
temporary workers in high-risk industrial roles — a profile that makes commercial carriers charge worst-case rates.
Benefits of a Group Captive
A well-managed Group Captive underwrites the specific risks of its members. Companies share risks and rewards with like-minded businesses. Top performers reduce costs, manage risk more effectively, and build value through underwriting profits returned to members.
Solution
A captive program that rewards best-in-class safety performance.
Cornerstone recommended joining a Group Captive insurance program that selects the best staffing firms and bases premiums on actual performance:
1
Performance-Based Underwriting
Premiums based on the client’s actual loss history, not industry averages that punish good operators.
2
Peer Group Selection
Placed alongside other best-in-class staffing firms — no more subsidizing competitors with poor safety records.
3
Profit Distribution
Underwriting profits are returned to members who maintain strong safety and claims performance.
Outcome
From survival mode to competitive edge.
Business Survival
The client reported that staying in their traditional commercial plan could have driven them out of business entirely.
Competitive Advantage
With more control over their workers comp program, the client continues to drive down expenses and gain a competitive edge in the market.
“
We were being punished for running a safe operation. The captive finally lets us benefit from the safety culture we’ve built.
— Client, Staffing / Manufacturing Firm
Facing a similar challenge?
Let Cornerstone build a custom solution for your business.