Commercial Towing Company
A major commercial towing company operating across New York City, Long Island, and Connecticut partnered with Union Risk to gain control over rising insurance costs while strengthening long-term financial stability. The organization operates approximately 80 units, employs roughly 120 people, and services a diverse mix of commercial clients including FedEx routes and public transportation support.
- Industry: Commercial Towing
- Location: New York City
- Captive Premium: $1,600,000
- Captive Coverages: Auto Liability, Physical Damage, Excess Auto Liability
- Captive Type: Single-Cell
Challenges
The company faced several industry realities:
- Escalating auto liability insurance costs typical of dense urban operations
- Limited transparency and profit participation in the traditional insurance market
- Growing operational complexity tied to regional expansion and commercial contracts
- Desire to convert insurance spend into an asset rather than a pure expense
Union Risk Services Solution
Leadership wanted a solution that would improve risk control, stabilize costs, and build enterprise value. Union Risk implemented a single-cell captive insurance structure covering:
- Auto liability
- Physical damage
- Umbrella liability
- Driver safety protocols
- Loss prevention practices
- Claims trend monitoring
- Operational accountability measures
Results & Impact
Financial Performance (Projected 5 Years)
- ✔ $3+ million in underwriting profit expected to be retained by the company
- ✔ $3+ million increase in enterprise value generated through captive surplus and improved financial profile
Operational Benefits
- ✔ Greater visibility into claims and risk trends
- ✔ Improved safety culture and driver accountability
- ✔ Stabilized long-term insurance costs
- ✔ Strategic control over insurance program design
Why It Worked
- ✔ Alignment of incentives: The captive allowed the company to benefit directly from strong safety performance.
- ✔ Industry specialization: Union Risk’s transportation expertise enabled proper program structuring and realistic underwriting assumptions.
- ✔ Risk management integration: The bespoke safety program supported sustained profitability inside the captive.
We work closely with our clients' tax, financial, and legal teams to evaluate the information within their portfolio and ensure that any planning concepts are seamlessly integrated into their overall financial landscape.