Duncan Supply knows a thing or two about longevity.
Founded in 1936 by Russell Duncan, the fourth-generation family-owned business has grown from its refrigeration roots into a heating, air conditioning, and refrigeration wholesale distributor with locations across multiple states.
Through that growth, some principles have stayed remarkably consistent.
“We truly live that depression mindset of buy what you can afford and operate within your limits,” said Christopher Duncan Hendricks, president and CEO of Duncan Supply Company. “Four generations later, we’re still running the business in the eyes of how it was founded 90 years ago.”
That approach to business has shaped the way Duncan Supply thinks about risk.
A relationship built around trust
For Hendricks, strong business relationships start with people.
“People love to do business with people,” he said. “Really, relationships mean everything.”
Duncan Supply had worked with Gregory & Appel Insurance before 2019, but that year brought a new conversation: whether a captive insurance program could be a fit for the company.
The concept was unfamiliar at first.
Duncan Supply was accustomed to a traditional insurance structure. A captive offered something different: greater ownership of its insurance program, along with a stronger connection between the company’s risk performance and its financial results.
Hendricks admits he had questions.
“The idea was foreign,” he said. “I was a little hesitant and kind of unsure because it’s a change.” There was a fear that if something bad happened, his company could be removed from the program. What helped was having an advisor who understood Duncan Supply’s business and history.
“I had Gregory & Appel saying, ‘Listen, this is what we do. We know you. We know your history. This will be a good thing, please trust us.’ And I went on that journey.”
Turning insurance into a resource
As Duncan Supply became more familiar with the captive, Hendricks began to see value beyond the financial side.
“This isn’t just insurance, this is learning from each other,” he said. “We unlocked a whole new asset, a whole new resource.”
Education became an important part of that experience.
Since joining the captive, Duncan Supply has invested further in its safety program, including adding a dedicated safety professional who participates in training, monitors regulatory developments, visits company locations, and works with branch leaders on areas that need improvement.
For Hendricks, having that focus inside the organization has brought greater visibility into risk across the business.
“The fact that I have somebody paying attention to the risk management in-house every day means the world,” he said.
As Duncan Supply has continued to grow, it has expanded that commitment by training an additional person to help support safety and risk management across its footprint.
Finding a partner who understands the business
Industry experience also matters to Hendricks.
Duncan Supply wanted an advisor who could understand its operations, communicate clearly, and share what similar businesses were seeing before those same issues reached Duncan Supply.
“We look for somebody who understands our type of business, who can relate to us and explain things in basic terms, but who’s also staying ahead of the industry,” Hendricks said.
That proactive education has become part of the relationship.
According to Hendricks, Gregory & Appel helps Duncan Supply stay aware of regulatory changes and risk concerns affecting other companies in its space, giving its team more information to act on before a problem develops.
“It’s great to have somebody who really stays ahead of our industry and looks out for people in our industry,” he said.
Betting on your own performance
Hendricks is also clear that captives are not the right fit for every company.
For business owners considering one, he recommends starting with the fundamentals: understand your claims history, what you are paying for insurance, and how much risk you are prepared to take on.
For Duncan Supply, the company’s safety record and operating philosophy made the captive worth exploring.
“When you’re first coming into a captive, the initial capital investment you have to make is that you’re really investing in yourself,” Hendricks said. “I thought, hey, if I’m going to bet on myself, this is what comes with it.”
That mindset has carried forward as the company grows.
More locations mean more exposure, but they also mean a continued investment in the people, processes and risk management practices that support the business.
For Hendricks, the relationship still comes back to the same thing it did in the beginning: trust.
“Find somebody that you trust and that’s genuine. Find somebody who you can connect with,” he said. “And that was everybody at Gregory & Appel.”
A risk strategy built for the road ahead
Duncan Supply has spent generations building its business around disciplined decisions, strong relationships, and taking care of what it has built.
Its approach to insurance now reflects that philosophy, too.
With greater ownership of its risk program, access to education, and a partner that understands its industry, Duncan Supply has built a strategy that can grow alongside the company.
Ready to take a closer look at your risk strategy?
Talk with Gregory & Appel Insurance about whether a captive or another risk management approach could fit your business.