ESOP companies often think differently when it comes to employee benefits.
Five years ago, that kind of out-of-the-box thinking led Hallam-ICS to participate in a newly formed Captive Insurance Group. Stability, custom coverage, and cost control were just a few of the reasons behind that decision.
Captive insurance can be a smart move for ESOP companies like Hallam-ICS. We have been a 100% ESOP company since 2015, and that ownership structure naturally shapes how we approach benefits.
I recently returned from our annual Captive Insurance Group conference, which brings together financial reviews, strategy discussions with brokers, and open conversations about best practices. It’s an opportunity to learn what’s working across other companies, how they manage costs while still providing strong coverage and supporting employee-owner health and wellbeing.
Being part of a captive insurance group allows companies to focus more directly on their own risk.
In a traditional insurance model, premiums are set based on broader market risk, not necessarily the specific risks of a company’s workforce. In a captive model, companies have more control. They pay for the actual medical costs incurred and set employee premiums based on their own experience.
Hallam-ICS is part of a Captive Insurance Group made up of 27 like-minded ESOP companies across the U.S. Because of that shared structure, there’s strong alignment in how companies approach cost containment, balancing financial responsibility with the goal of supporting employees and their families.
Risk is shared across the group. If claims exceed a certain threshold for one company, the collective fund helps absorb that impact. And unlike traditional insurance models, unused funds at the end of the year are returned to the group, reinforcing a shared incentive to manage costs responsibly.
The goal each year is to balance what is paid in premiums with what is spent on care, keeping coverage sustainable while continuing to support employees.
What stands out most from the captive experience is the level of collaboration. The conference provides an opportunity to learn from other ESOP companies, share ideas, and explore new approaches to employee benefits.
That transparency matters.
Just as Hallam-ICS prioritizes working with compatible clients, we also prioritize choosing partners who align with our values. Whether it’s benefits providers or insurance partners, we look for organizations that support our culture and focus on the health and wellbeing of our employee-owners.
Being part of a captive insurance group isn’t just a financial decision; it’s a reflection of how ESOP companies think.
It’s about:
That mindset shows up not just in benefits, but across how ESOP companies operate.
It’s one more way we try to align our benefits with our values as an ESOP.
If you’re interested in learning more about how Hallam-ICS approaches employee ownership and benefits, you can learn more about our culture and ESOP model.
About the Author
Mary Beth Bouvier is an HR Generalist at Hallam-ICS, where she supports employee engagement and benefits programs across the organization. Since joining the company in 2019, she has played a key role in HR initiatives and enjoys helping create a positive, people-focused workplace for employee-owners.
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About Hallam-ICS
Hallam-ICS is an engineering and automation company that designs MEP systems for facilities and plants, engineers control and automation solutions, and ensures safety and regulatory compliance through arc flash studies, commissioning, and validation. Our offices are located in Massachusetts, Connecticut, New York, Vermont, North Carolina, and Texas and our projects take us world-wide.