SUBMIT A RISK
For a commercial masonry contractor in New York, general liability is more than an insurance line — it is a condition of getting on the job. General contractors and project owners require high limits, additional insured status, primary and noncontributory wording, and waivers of subrogation before a crew sets foot on site. Those requirements dictate not only how much coverage the contractor buys, but the financial strength of the carrier that issues it. Captives Insure structured a program that satisfies every one of those demands while placing the underwriting results in the contractor's own hands.
The policy is written on A− (Excellent) AM Best rated admitted paper, carrying the New York state forms and the full suite of contractor endorsements that construction agreements call for. The risk is then reinsured back to a captive insurance company owned by the contractor, which assumes 100% of the general liability exposure. After fronting, program, and operating costs, nearly $1.7 million each year flows into the captive — capital the owners control, held in trust to pay claims, and retained as underwriting profit whenever losses come in below expectations.
- Limits built for construction contracts. $5,000,000 each occurrence, $5,000,000 per location or project, and an $8,000,000 policy aggregate, with a $5,000,000 products–completed operations aggregate and $5,000,000 for personal and advertising injury.
- Per-project aggregates. Designated project and location aggregate endorsements keep a large loss on one job from eroding the limits available to every other job the contractor is working.
- Contract-ready endorsements. Blanket and scheduled additional insured coverage for owners, lessees, and contractors — including completed operations and automatic status when required by a written construction agreement — along with primary and noncontributory wording and a waiver of transfer of rights of recovery.
- A nominal retention. The contractor carries just a $1,000 self-insured retention per occurrence. Above that, the captive retains each loss through the full policy limits.
- Full risk and reward. One hundred percent of the reinsured risk — and the underwriting profit and investment income that come with it — belongs to the captive's shareholders.
| Layer | Amount |
|---|---|
| Self-Insured Retention (per occurrence) | $1,000 |
| Captive Retention (per occurrence) | Up to $5,000,000 |
| Each Occurrence / Per Location or Project Limit | $5,000,000 |
| Products–Completed Operations Aggregate | $5,000,000 |
| Policy Aggregate Limit | $8,000,000 |
| Risk Participation — Insured's Captive | 100% |
In this structure, nearly $1.7 million of annual premium becomes the captive's loss fund. Covered claims and the associated claim-handling costs are paid from that fund. Whatever the fund does not consume in a given policy year is underwriting profit — and it belongs to the owners, along with the investment income earned while reserves are held. Once the policy period closes and claims develop, the captive can request release of surplus from the trust, giving the owners a defined path from good loss experience to distributable capital.
That makes jobsite safety a balance-sheet decision. Fall protection, scaffold inspections, housekeeping, and quality control on finished work are no longer costs whose benefit accrues to an outside carrier. Every slip, fall, or completed-operations claim avoided is retained directly by the business that prevented it.
Rated, Compliant Paper
General contractors and project owners see a policy on A− (Excellent) AM Best rated admitted paper with New York–specific forms — the same certificate they would expect from any carrier — while the risk reinsures back to the contractor's own captive.
Keep Working, Keep Qualifying
Additional insured, primary and noncontributory, and waiver of subrogation endorsements are built into the program from day one, so the captive structure never stands between the contractor and its next bid.
Direct Claims Influence
As reinsurer of its own policy, the contractor gains independent defense panel counsel and a direct hand in claims handling through an independent third-party administrator — speeding resolution, discouraging fraudulent claims, and controlling the ultimate cost of loss.
Ownership of the Outcome
With the captive retaining every dollar of loss above a $1,000 retention, the contractor's investment in safety and workmanship pays back directly in retained underwriting profit rather than in someone else's results.
By taking its general liability into a captive it owns, a New York masonry contractor now directs nearly $1.7 million a year into a loss fund under its own control — with $5 million limits, contract-ready endorsements, and A− rated paper — so that every safe day on the jobsite has the potential to become underwriting profit for its owners.
Is Your Business the Right Fit for a Captive?
If your organization carries predictable exposure, a disciplined safety program, and meaningful annual premium, a captive may convert that spend into retained profit. Captives Insure designs, fronts, and reinsures programs that put underwriting profit back where it belongs — with you.