Timeline to Join a Group Captive

The full analysis and qualification process can take two to six months. Don't try to run it alongside your regular renewal.

Step	Action	Typical duration	By whom	Target date
1	Collect 5 years of claims and premium history	1-2 weeks	Business owner
2	Prepare a pro-forma	2 days	Insurance broker
3	Submit to the captive for actuarial review and approval	2 weeks to 2 months	Captive
4	Review the captive memorandum and other documents	1-2 days	Business owner
5	Review the captive cost and premium calculation. Review the captive's financials at this time.	2 hours	Broker and captive manager present
6	Purchase captive stock and make the first premium payment	At inception of coverage	Business owner
7	Post collateral in cash or a letter of credit	Up to 30 days after inception	Business owner

Is joining a group captive right for you?

If you can answer yes to these, a group captive may make financial sense.

Question	Yes	No
Do I have a strong focus on employee safety and a great corporate culture?
Am I a privately held mid-market company with predictable risks?
Do I pay over $100,000 a year in workers' compensation, general liability and auto premiums combined, or insure over 20 employees on my health insurance program?
Over the last five to 10 years, are my total claims paid less than 40% of the total premium I paid? (Use the calculator below. Cap any claim at $100,000.)
Is my business financially strong, with a positive cash flow?

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