In this work, ring opening insertion polymerization (ROIP) of ε‐caprolactone (ε‐CL) using a series of hydrogen phosphonates (H‐phosphonates) as initiators was investigated. The ROIP occurred by a coordination‐insertion mechanism containing two steps. First, the carbonyl carbon was attacked by the phosphorus atom of the H‐phosphonate tautomerization (a phosphine‐like structure) and the acyl‐oxygen bond was broken. An intermediate was formed by the coordination of the former carbonyl carbon and acyl‐oxygen of ε‐CL to phosphorus atom. Then the phosphorus‐alkoxide of H‐phosphonate was cleavaged to form acyl‐alkoxide bond. Poly(ε‐caprolactone) (PCL)‐inserted H‐phosphonates (PCL‐HPs), which was not only the product of the occurred ROIP but also the initiator for the next ROIP, were produced. After 60 min of microwave irradiation (510 W), PCL with a number‐average molar mass of 7800 g/mol and monomer conversion over 92% was obtained. © 2009 Wiley Periodicals, Inc. J Polym Sci Part A: Polym Chem 47: 6214–6222, 2009