Due to rising insurance costs, NAFI/NFI professionalized its risk and insurance operations in 2006 and was able to significantly reduce insurance claims. Insurance premiums, however, did not reflect the reduced exposure and the insurance company was reaping the benefits of NAFI’s efforts. We began to explore alternative structures to better realize the financial benefits of risk management efforts and conserve precious resources.
In 2009, NAFI worked with an insurance broker to form The Captive Advantage, a group captive insurance company created for human service organizations and is owned by its members. The lines of coverage include: general liability, professional liability, sex abuse or molestation, and auto.
There are both financial and operational benefits for member participation.
- On the financial side, members of The Captive Advantage have saved $2.4M (44%) of their premiums in our first four years.
- On the operational side, members have access to a wide range of risk and insurance management services from a highly skilled professional.
- Members receive assistance in reducing their claims and incidents to improve organizational safety for clients, staff and management.
NAFI is a member of TCA and benefits financially and operationally from its participation in this company. For more details, please check out The Captive Advantage website ›