Client Story 2:
Turning Rising Premiums into Smarter Coverage

1. The Challenge

A family-owned contractor with 20 employees faced rising costs. Annual payroll was only $1.2 million, yet workers’ comp premiums had ballooned to $140,000 — a direct hit to profit.

The owner felt trapped. Traditional insurance drained cash flow, while fully self-insuring looked too risky. One serious accident could erase years of progress. Group self-insurance was on the table, but the owner wasn’t sure how it worked, or whether it was the right fit.

2. Our Approach

At The CFO Contractor, we step in with financial clarity before decisions are made. For this contractor, we:

Compare three paths side-by-side: fully insured, fully self-insured, and group self-insurance.
Model best- and worst-case scenarios to weigh not only savings but risks.
Factor in regulatory requirements — from reserve obligations to possible retroactive group assessments.
Forecast cash flow under different claims scenarios, showing impacts on payroll, equipment purchases, and growth plans.

3. The Breakthrough

The analysis shows that joining a group self-insurance pool (SIG) is the most strategic move. It balances protection with meaningful savings and opens the door to shared safety resources.

4. The Result

Within the first year, the contractor experiences:

Premium savings of nearly $30,000 — almost 20% less than before.
Improved safety culture through access to group training and loss-control programs.
Confidence that coverage protects against catastrophic risk without overpaying.

The owner puts it simply:

“Before, I felt like insurance was a black box I couldn’t control. The CFO Contractor broke it down, gave me real options, and saved us money without putting us at risk. Now I can focus on winning more jobs and growing my business.”

5. The CFO Contractor Difference

Small contractors often feel powerless in negotiations with insurance carriers. We change that. Using risk modeling, financial forecasting, and plain-language guidance, we help you secure the protection you need without overspending.

Most importantly, we don’t just recommend — we build the roadmap:

Prepare financial documents for approval.
Explain group terms in practical, non-technical language.
Set up quarterly claims reviews to stay proactive instead of reactive.

👉 If you’re wondering whether group self-insurance could work for your business, let’s talk.