Cherrywood Lumberman's Association

The Rent-A-Captive Approach

What makes the Cherrywood Lumberman's Association unique is the rent-a-captive approach to purchasing insurance.  You can see the advantages when you compare conventional insurance to a captive below. 

Conventional Insurance

  • Pay a fixed premium
  • Insurance Co keeps all premium even if no claims
Captive

  • Premium paid into Captive
  • Risk is shared with other Captive members
  • At end of policy year, if good claims experience, each member will recieve:
  1. Their portion of underwriting profit,
  2. Investment income

Because Cherrywood is an association, it can not have its own captive, so it "rents" a portion of a captive owned by someone else which in our case is The PMA Companies.



The rent-a-captive arrangement provides traditional insurance coverages and services and allows participants to share in potential underwriting profits and investment income.  The opportunity to earn additional income often provides incentive for a greater commitment to risk management by members.

The Cherrywood Lumberman's Association is open to everyone, although our focus is related to the wood products industry.  To participate in our workers' compensation program a member must possess an excellant workers' compensation experience and meet our risk related criteria.  Substantial savings can result. 
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