How Texas Contractors Use Group Captive Insurance to Rein in Rising Premiums

Texas Group Captive Series

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For Texas contractors, the insurance market can feel like a never-ending cycle of rising premiums, unpredictable renewals, and limited options. Between workers’ comp, general liability, and commercial auto coverage, insurance can quickly become one of the largest overhead expenses. But there’s a better way. Group Captive Insurance gives contractors the ability to control costs, reward safety, and create long-term stability.


Why Traditional Insurance Fails Mid-Size to Large Contractors

The construction industry is high-risk by nature — from jobsite injuries to equipment damage to liability claims. Traditional carriers spread this risk across the entire market, meaning contractors with strong safety programs often subsidize those with poor loss records.

Common Pain Points:

  • Volatile premium increases at renewal.
  • Limited ability to customize coverage.
  • No reward for strong safety and loss control programs.

How Group Captives Solve the Problem

In a Group Captive, contractors join forces with other safety-focused companies to form their own insurance company. This model allows them to:

  • Stabilize Premiums: Control costs independent of the wider insurance market.
  • Reward Safety: Fewer claims mean lower long-term costs and potential profit returns.
  • Gain Transparency: Members have a say in how claims and reserves are managed.
  • Build Community: Work alongside other like-minded Texas businesses.

According to the Captive Insurance Companies Association, captives are among the fastest-growing insurance solutions for industries like construction.


The Texas Contractor Advantage

For contractors in Texas, Group Captives align perfectly with industry challenges:

  • Workers’ Compensation: One of the largest costs for construction firms. A captive rewards safe crews with long-term savings.
  • Commercial Auto: Jobsite fleets and trucks are a major liability exposure. Captives allow for better control of claims and driver safety programs.
  • General Liability: Construction projects carry high-risk exposures; captives provide tailored coverage with member oversight.

Related Resource: Associated General Contractors of America


Is Your Contracting Business a Good Fit?

Group Captive Insurance is best for contractors who:

  • Spend $150,000+ annually on insurance premiums.
  • Have a proven culture of safety and risk management.
  • Want ownership in their insurance program instead of being policyholders.

Building Stronger Foundations with Captives

At EIS Texas, we help contractors evaluate whether a captive is right for them. For many, it’s the first time insurance has felt like an asset instead of an expense.


Ready to Explore Group Captives for Contractors?

Are you a Texas contractor tired of unpredictable premiums and shrinking margins? Let’s talk.

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