National Contractors Insurance

Our Captive

National Contractors Insurance Ltd. is a member-owned insurance company where non-related businesses join together to share risk, stabilize premiums, and improve results through disciplined loss control. With active shareholder participation and best-in-class service partners, NCI provides the long-term security of a well-managed insurer. Members gain clarity and confidence that premiums are appropriate and performance is rewarded. In short, NCI turns insurance into a manageable cost and puts companies in control of their insurance future.

Our Captive

National Contractors Insurance Ltd. is a member-owned insurance company where non-related businesses join together to share risk, stabilize premiums, and improve results through disciplined loss control. With active shareholder participation and best-in-class service partners, NCI provides the long-term security of a well-managed insurer. Members gain clarity and confidence that premiums are appropriate and performance is rewarded. In short, NCI turns insurance into a manageable cost and puts companies in control of their insurance future.

Highlights

Highlights

Members

100

Annualized Premiums

$ 100 M

Total Dividends

$ 200 M

Construction Employees Insured

50000

Benefits of Membership

Ditch the Volatility

Member premiums are no longer tied to the unpredictable traditional market. In NCI, a member’s performance, not outside cycles, is the primary driver of its long-term insurance cost.

Safety Pays

Companies that prioritize safety and actively manage claims generally experience long-term premium reductions and potential returns.

Experience True Transparency

Experience true shared risk with full transparency into where every premium dollar goes, plus the opportunity to build equity and achieve powerful financial efficiencies.

Ditch the Volatility

Member premiums are no longer tied to the unpredictable traditional market. In NCI, a members performance, not outside cycles, is the primary driver of its long-term insurance cost.

Safety Pays

Companies that prioritize safety and actively manage claims generally experience long-term premium reductions and potential returns.

Experience True Transparency

Experience true shared risk with full transparency into where every premium dollar goes, plus the opportunity to build equity and achieve powerful financial efficiencies.

“Collaborating with likeminded, safe construction companies across the United States has not only been financially beneficial but more importantly it has enhanced our safety culture immensely over the years.”

President

Joined 2000

“Joining NCI was a strategic move for us. As we continue to grow, it gave us greater control over our risk management program and improved transparency with claims.

Just as valuable has been the collaboration with like-minded companies focused on safety and continuous improvement. The Safety Workshops have been tremendous, and our team looks forward to the key takeaways from each workshop.”

Owner

Joined 2022

“After nearly a century in business and exploring every traditional insurance model available, joining NCI in 2002 was the breakthrough we needed. It provided the perfect balance of risk minimization and cost control. Over two decades later, the results are undeniable: millions of dollars saved, consistent investment income, and a community of high-performing peers. Joining this captive wasn’t just an insurance move; it was a superior business decision.”

President & CEO

Joined 2002

“Becoming a member of NCI allowed our company to take a more proactive approach to insurance and safety. Instead of reacting to the traditional insurance market, we now have greater transparency, accountability, and control over our performance. The Captive has created a community of contractors who openly share best practices and ideas. That collaboration has made our company stronger.”

CFO

Joined 2018

Group Captive Insurance vs Traditional Insurance

Group Captive Insurance
vs
Traditional Insurance

Group Captive Insurance

Traditional Insurance

Group Captive Insurance

Traditional Insurance

Frequently Asked Questions

The insurance marketplace has historically endured “hard and soft” market cycles where premiums go up and down with little relation to an actual loss experience. By pooling resources and becoming owners of an insurance company, these swings can be insulated, making insurance costs not only more predictable but potentially profitable. This is achieved through unbundled services resulting in lower operating costs and the ability to retain investment income.

If structured properly, the member is not at financial risk. If the member were simply paying a premium into a fund in a bank and hoping their losses do not exceed the fund, then yes, it would be risky. When structured properly, using a licensed admitted insurance carrier to act as the fronting company issuing the policy, and by using a financially strong reinsurance company to insure catastrophic losses, the risk is minimal. Under this concept, the assumption of risk occurs in the smaller, predictable layer. By cutting operating costs and earning investment income, financial risk is reduced, and the bottom line is enhanced.

The captive has a specialized loss control program administered by various risk control consultants. Claims are administered by Zurich. Special claim handling instructions are prepared for each member’s specific needs. Since NCI is capable of securing these services independently on an unbundled basis, members are assured that the service provider is evaluated based on the quality of its work product. In addition, Captive Resources in its advisory capacity assigns a claims and risk control professional as a member advocate. Finally, NCI conducts two risk control workshops each year which allows for an exchange of information between members that is not possible in the conventional market.

Insureds are committed to the captive for only one policy period. Profits are based upon the policy period in which the insured is a member. The captive does ask members to make a moral commitment for at least three years, to give the member an opportunity to learn and understand all of the workings of the captive.

The member’s loss exposure and its loss fund will be established by the captive’s independent actuary. Typically, any assessment will be driven by the member’s loss experience. Assessments are limited, and members should generally know their expected maximum amount up front. That said, depending on circumstances, there could be risk of underwriting losses.

NCI is not rent-a-captive arrangement. Unlike many other group captives, which are controlled and managed by brokers, and/or agents, this is a captive owned and directed by its shareholders.

The captive reinsures Zurich North America for Automobile Liability and Physical Damage, Workers’ Compensation, and General Liability including Products and Completed Operations of its members. Property coverage is available for all casualty members through another captive option.