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Captive Insurance Solutions

Discover how captive insurance offers cost savings, customized risk management, and profit potential through self-insurance.

As businesses grow, so do their insurance needs. At Tooher-Ferraris Insurance Group, we understand that traditional insurance solutions may not always offer the flexibility or cost-efficiency your business requires, especially as it grows and faces unique risks. That’s why we offer captive insurance solutions, a flexible and cost-effective approach to protecting your business.

What Is Captive Insurance?

Captive insurance is an alternative risk management solution where a business or a group of businesses form their insurance entity —Employee Benefits Group Captive. Unlike traditional insurance, where you pay premiums to third-party carriers, captive insurance allows you to retain and manage risks more effectively while also potentially sharing in underwriting profits and investment income.

Discover how a Health Insurance Captive Program can elevate your business.

This innovative approach provides significant advantages for companies aiming to enhance employee benefits while controlling costs. By pooling resources with other aligned companies, your business can reap the benefits of self-insurance without shouldering all the risk. This collaborative risk-sharing typically results in more predictable premiums and less volatility than traditional insurance models.

Additionally, this program allows businesses to tailor their health insurance plans to better suit the specific needs of their employees, boosting satisfaction and improving retention rates. With control over claims management and the ability to implement targeted wellness programs, a health insurance captive program gives businesses the tools to foster a healthier, more engaged workforce.

The Benefits of Captive Insurance

Captive insurance offers a range of advantages that make it an attractive option for many businesses, including:

Cost Savings:

By bypassing the traditional insurance market, companies can avoid excessive premiums, fees, and administrative costs, leading to significant savings.

Customized Coverage:

Captives can be tailored to cover specific risks unique to your industry, operations, and objectives, offering more flexibility than traditional policies.

Increase Flexibility & Control:

Businesses gain greater visibility into their claims data and cost drivers resulting in better control over their provider network and Third-Party Administrator (TPA) relationships.

Risk Control:

Businesses gain greater control over their risk management strategy, claims processing, and policy design, allowing for a more proactive approach.

Improved Cash Flow:

Captives can help manage cash flow more effectively by minimizing premium volatility and offering stable, predictable costs.

Profit Retention:

Instead of paying premiums to a commercial insurer, captives allow businesses to retain underwriting profits and investment income, which can be reinvested into the business.

Frequently Asked Questions (FAQs)

What is a health insurance captive?

A health insurance captive is an alternative insurance model where businesses join to form their own insurance company to self-insure their risks. This allows companies to have greater control over their insurance policies, claims management, and cost structures.

How can a health insurance captive reduce costs for my business?

By pooling risks with other like-minded businesses, captives can achieve economies of scale, reducing administrative and management costs. Moreover, since profits typically retained by traditional insurers are kept captive, members can benefit from returned surpluses and lower overall insurance costs.

What are the risks and benefits of joining a health insurance captive?

Benefits: Increased control over insurance policies, the potential for cost savings, improved risk management, and the ability to tailor policies to specific needs.

Risks: Potential exposure to greater losses if the captive’s claims are higher than expected, upfront investment costs, and the need for ongoing management and compliance.

Who can join a health insurance captive?

Typically, mid-sized to large companies with a strong financial background and a commitment to proactive risk management are ideal candidates. Companies should also be willing to collaborate with other businesses to manage the captive.

How does risk sharing work in a health insurance captive?

In a captive, all member companies contribute to a shared insurance pool to cover claims. This risk sharing reduces volatility for any member by distributing risks across a broader base, potentially leading to more stable premiums and lower costs over time.

Can a captive insurance plan be customized to fit my company's needs?

Yes, one key advantage of a captive is the flexibility it offers. Members can work together to design coverage that specifically addresses their unique risks and requirements, unlike traditional insurance, which often offers a one-size-fits-all policy.

What is the process for joining a health insurance captive?

The process typically involves assessing your company’s insurance needs and risk profile, identifying an appropriate captive to join (or steps to create a new one), undergoing a feasibility study, and meeting regulatory requirements. Companies then pay into the captive to cover premiums and establish reserves for covering claims.

Explore Your Options With Tooher-Ferraris Insurance Group

Whether new to captive insurance or looking to optimize an existing program, Tooher-Ferraris Insurance Group is here to help. Our team of experts will guide you through the entire process, from feasibility studies to ongoing management, ensuring that your captive program delivers maximum value.

Contact us today to learn more about how captive insurance can benefit your business and to discuss your specific needs. Let Tooher-Ferraris Insurance Group be your trusted partner in risk management and insurance innovation.

Insights

Business Insurance

September 9, 2025

Cyber Insurance in 2025: Why “Good Enough” Security Isn’t Enough Anymore

It often starts with a single click. An employee opens a convincing email, and within minutes, your company’s network is compromised. For too many businesses, this story ends with lawsuits, regulatory fines, and damaged reputations. In 2025, “good enough” cyber security is no longer enough.

To address this issue, Tooher-Ferraris Insurance Group supports businesses by integrating cyber liability coverage into their risk management plans, ensuring financial protection and faster recovery when digital threats strike.

Here’s a guide from our insurance experts on why forward-thinking organizations are pairing technical defenses with comprehensive cyber liability insurance.

The Rising Cost of Cyber Incidents

Cyber attacks are not just growing in frequency; they are becoming significantly more expensive. According to a data breach report, the global average cost of a data breach reached $4.45 million, with many small and mid-sized businesses lacking the resources to recover.

Even companies with strong IT controls face financial losses that extend beyond technology, including legal fees, customer notification expenses, and reputational fallout.

Why Cyber Liability Insurance Matters

While technology reduces the likelihood of an incident, no defense is foolproof. Cyber liability insurance is designed to absorb the financial shock when prevention fails. Coverage can extend to:

Data Recovery: Restoring lost or compromised information.

Legal Defense: Paying for attorney fees, settlements, or judgments.

Regulatory Fines: Covering penalties from privacy or data protection violations.

Notification Costs: Informing customers and providing credit monitoring.

Business Interruption: Replacing income lost during downtime.

Public Relations Support: Managing the reputational damage after a breach.

Without insurance, these expenses land directly on your balance sheet, potentially threatening business continuity.

Coverage Gaps to Watch For

Many businesses mistakenly assume their general liability or professional liability insurance covers cyber events, only to find exclusions buried in the fine print. Common gaps include:

Ransomware Payments: Some policies exclude extortion costs or only cover partial reimbursement.

Third-Party Data Loss: Coverage may not extend to vendors or contractors handling your data.

Cloud-Based Breaches: Incidents in hosted environments may fall outside traditional coverage.

Reputation Management: Limited or no funds for crisis communications.

Employers should review policies carefully with an experienced insurance agency to ensure coverage matches real-world risks.

Building a Proactive Cyber Security Plan

Insurance should complement, rather than replace strong technical defenses. Businesses must combine preventive measures with financial protections. A proactive plan includes:

Regular Risk Assessments: Identify vulnerabilities before attackers exploit them.

Vendor Management: Evaluate third-party partners with access to sensitive data.

Employee Training: Reinforce phishing awareness and data handling protocols.

Incident Response Planning: Establish procedures for fast containment and recovery.

Policy Alignment: Match insurance coverage to organizational risk profiles.

Strengthen Your Protection with Expert Guidance

Cyber threats in 2025 demand more than basic defenses. A single incident can overwhelm even the most prepared businesses if financial protections are missing. At Tooher-Ferraris Insurance Group, we specialize in tailoring cyber liability insurance to complement your security investments, close coverage gaps, and safeguard your long-term stability.

With over 90 years of expertise, our insurance agency helps organizations build resilience through research-driven risk management and comprehensive protection.

Employee Benefits

September 9, 2025

From Payroll to People Strategy: How AI is Transforming HR

Artificial intelligence (AI) is no longer just a futuristic concept; it has become a powerful tool reshaping how HR departments function.

From simplifying payroll to supporting strategic decision-making, AI is transforming HR into an essential driver of organizational success.

By leveraging the right technologies, companies can save time, improve efficiency, and foster a workplace that values both productivity and employee well-being.

Automating Administrative Tasks

For years, HR teams have been bogged down by repetitive responsibilities such as payroll processing, compliance reporting, and benefits administration. AI-driven platforms can now handle these functions with speed and accuracy. Automated systems reduce the chances of human error, ensuring employees are paid correctly and compliance standards are met. This shift allows HR professionals to dedicate more energy to people-focused initiatives, strengthening workforce relationships.

Enhancing Recruitment and Onboarding

Finding the right candidate has always been one of HR’s toughest challenges. AI-powered recruitment tools now streamline this process by analyzing resumes, matching candidates with job requirements, and even predicting future performance based on data patterns. Automated onboarding platforms take it a step further by guiding new hires through paperwork, training modules, and company policies, making the transition seamless. This integration improves retention rates and sets the tone for long-term employee engagement.

Improving Employee Engagement and Retention

AI also helps in monitoring and improving employee engagement. By analyzing feedback surveys, performance reviews, and even communication patterns, AI can identify warning signs of burnout or dissatisfaction. With these insights, HR leaders can take proactive steps to address issues before they escalate. The result is a healthier workplace culture that supports career growth, job satisfaction, and long-term loyalty.

Compliance, Privacy, and Data Protection

As organizations adopt AI tools, maintaining compliance and protecting sensitive employee data becomes critical. HR teams must ensure that AI-driven decisions comply with labor laws, anti-discrimination policies, and data privacy regulations. Establishing transparent processes builds trust with employees while reducing the risk of legal complications. For businesses already managing complex risks such as employment practices liability insurance (EPLI), AI can add additional layers of accuracy and oversight, helping ensure compliance with labor laws and workplace policies.

Practical Adoption of AI in HR

Employers interested in leveraging AI can start small by introducing tools for applicant tracking, automated payroll, or chatbots for HR inquiries. Over time, integrating advanced analytics and predictive tools can help align HR with long-term business goals. Just as companies invest in coverage like the best professional liability insurance to protect their assets, adopting AI responsibly safeguards the organization while supporting its most valuable asset: its people.

AI is transforming HR from a purely administrative function into a people-focused strategy that strengthens recruitment, engagement, and compliance. Companies that adopt AI wisely will not only save time and resources but also create more supportive and resilient workplaces.

As a leading insurance company, Tooher-Ferraris Insurance Group provides tailored solutions for individuals and businesses, ensuring peace of mind for today and the future.

Employee Benefits

September 9, 2025

GLP-1 Medications and Your Benefits Strategy: Balancing Cost and Care

New medications like GLP-1 receptor agonists, originally developed for diabetes and now widely prescribed for weight management, are reshaping conversations in health care. For employers, these treatments present both an opportunity and a challenge. While they can significantly improve employee health outcomes, they also carry high costs that may strain benefit budgets.

Tooher-Ferraris Insurance Group understands that effective benefits planning requires more than reacting to rising drug expenses; it’s about proactively structuring coverage to balance affordability with access. Our tailored employee benefits solutions in Connecticut help employers evaluate GLP-1 coverage, optimize PBM strategy and stop-loss, and control costs while safeguarding employee health.

Why GLP-1 Medications Matter for Employers

GLP-1 medications, including semaglutide-based drugs such as Ozempic and Wegovy, have been shown to reduce A1C levels, support weight loss, and lower risks for cardiovascular disease. The clinical outcomes are promising, particularly as obesity-related conditions cost U.S. employers more than $147 billion annually in lost productivity and medical expenses. Supporting employee access to effective treatments can improve long-term health, reduce absenteeism, and strengthen workforce performance.

However, these benefits come at a steep price. Monthly costs for GLP-1 medications can exceed $1,000 per patient, creating difficult decisions for employer-sponsored health insurance plans. The challenge lies in balancing improved care with sustainable cost management.

5 Considerations for Your Benefits Strategy

Below are five key factors to guide your benefits strategy and manage the impact of GLP-1 medications effectively.

Understand the Financial Impact

Employers need to assess how covering GLP-1 medications affects their overall health insurance plan spend. A cost analysis should account not only for prescription coverage, but also for potential savings from reduced hospitalizations and fewer obesity-related claims.

Explore Step-Therapy Programs

Some health plans adopt a step-therapy approach, where employees first try lifestyle programs or lower-cost treatments before GLP-1 prescriptions are approved. While controversial, this approach can help control costs while still offering access to the medication when clinically necessary.

Leverage Data and Benchmarking

Claims data and benchmarking tools can highlight utilization patterns and help employers compare their plan performance with peer organizations. This information supports evidence-based decisions on formulary design and eligibility criteria.

Promote Holistic Wellness Programs

Medication alone does not solve the broader challenge of obesity and related conditions. Employers should reinforce GLP-1 coverage with wellness initiatives such as nutrition counseling, weight management programs, and fitness incentives.

Integrating medication with supportive resources enhances outcomes and builds a culture of health.

Communicate Clearly with Employees

Employee education is essential. Confusion around eligibility, coverage limits, and copay requirements can lead to frustration. Transparent communication ensures employees understand the resources available and how to access them, improving satisfaction and compliance.

Balancing Cost and Care

There is no one-size-fits-all solution. Employers must weigh the immediate cost burden against the long-term benefits of healthier employees and reduced chronic disease claims. The most effective strategies combine financial controls with a commitment to employee well-being.

Partner with Tooher-Ferraris Insurance Group for Smarter Benefits Solutions

Your workforce deserves care that supports their health without overwhelming your budget. At Tooher-Ferraris Insurance Group, we recognize the challenges employers face in balancing cost and care within their benefits strategies. Our team of employee benefits consultants provide research-driven guidance and tailored employee benefits solutions to help organizations manage expenses while supporting access to effective treatments like GLP-1 medications.

With our expertise, you can design an employee benefits program that safeguards your budget, promotes employee health, and strengthens your organization’s long-term success.

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