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Insurance Captive – Yes, You Need To Know

I last wrote about the CFA Insurance Captive in this forum a little over a year ago so its time to get on the pulpit yet again. If this were a normal business climate, the captive would have been in operation for nearly a year. We need approximately $3 million premiums to meet the threshold for the underwriter and reinsurers. Three years ago the same group of contractors who have currently committed would have been at least $5 million. Because business is down, insurance premiums are lower. Instead of $5 million we are currently at around $2.5 million so we still are seeking a few good, forward-thinking contractors who want to get in on the ground floor. It’s not too late.

Why am I stating my case yet again? Quite simply, in my 19 years as director of this association there has never been a member benefit (you have to be a member to participate) that will have as much impact on your business operations and which will return several times over (ten, twenty, thirty times or more), annually, the cost of membership when the captive and risk management aspects are developed. It typically takes around 3 years to build the reserve pool and develop the risk management portion of the program but in the interim you will have better coverage with fewer exclusions and a dedicated support team with the interests of your industry at heart. You will be collecting and sharing data about risks and occurrences that happen in your businesses. There is nothing else like it in our industry (with the possible exception of the CSDA program on which ours is based).

This is a foreign concept to most of you. It is not a group buying effort. We tried those in the past and they did not work. I have sat through at least a dozen presentations explaining the program and I learn more about it each and every time. You need to take the first step. You owe it to yourself and to your company to take a serious look at this program.

Those who have committed will gladly share their impressions of the program and the management team and the consultants are willing to schedule one-on-one presentations and answer sessions to deal with any concerns, misconceptions, or other misgivings you might have. All questions are answered honestly and straight-forward with no obfuscation (look it up).

The initial meeting of those who expressed interest to serve as trustees for the effort met recently in Chicago. We also set a tentative due date for, as Jay Odice our consultant calls it, “birthing the captive”. That date is April of 2012. Underwriters and reinsurers are ready, the team is ready, we simply need to get to our base premium level.

If there is sufficient interest, we will set-up an information webinar in the next 2-3 weeks. No obligations, no travel, just an opportunity to ask questions and take part in a CFA initiated member benefit that could save you tens of thousands of dollars. Call the CFA if you are interested in the program or the webinar.

  1. Contact Jim Baty, jbaty@cfawalls.org or 866-232-9255, to obtain a copy of our 50-min self-moderated PowerPoint presentation covering this program.
  2. Watch the presentation at your leisure.
  3. Watch for upcoming announcements for a Q&A teleconference.
  4. Stop by our WOC booth and discuss the program with our manager, Tom Hall.
  5. Submit your loss history and get involved (does not require completion of any steps above).
Ed Sauter, Executive Director, CFA
esauter@cfawalls.org
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Concrete FACTS, a publication of the Concrete Foundations Association, is THE voice for residential concrete industry news, market intelligence, business strategies, technical solutions, product information, and other resources for professionals in the cast-in-place concrete industry. Subscriptions to Concrete FACTS is available to anyone involved or interested in the residential concrete industry as a service to your industry. Please contact CFA Headquarters to find out more about your free subscription or Email Us