Group Captive Insurance Programs Tackle High Insurance Costs

One of the largest development firms in New Orleans, whose high-profile projects have included the $530 million Four Seasons Hotel at the foot of Canal Street, has faced some serious "sticker shock" when it comes to its insurance premiums in the last couple years.

But unlike the average resident or mom-and-pop business, Woodward Design + Build has managed to find a self-insurance option that is available only to an elite few.

The company, which employs about 200 people and has annual revenue in the neighborhood of $300 million, recently joined two group captive insurance programs -- basically exclusive self-insurance clubs -- in an effort to bring its premiums under control.

Corey Lloyd, Woodward’s former in-house lawyer, said that when the company ran the numbers to see if joining one of these esoteric programs would be worthwhile, it was a no-brainer: premiums came in up to 50% lower, a massive saving when your annual insurance outlay is well into seven figures.