Captive Insurance and Construction: Alternative Risk Structures, Pros and Cons, Key Provisions

This CLE webinar will provide an in-depth look at the use of captive insurance in the construction industry where companies are looking for alternative risk structures to increase control and flexibility of their insurance programs. The panel will discuss common uses of captives as well as the potential risks and benefits for construction clients. The panel will also offer best practices for structuring key provisions.

Construction industry companies are increasingly using captive insurance as part of their risk management strategy including the use of captives for wrap-up--e.g., owner-controlled and contractor-controlled insurance programs (OCIPs and CCIPs), as well as subcontractor default and environmental policies. Much of this increase is driven by the desire to control costs.

Captive insurance offers the flexibility to manage an organization's unique risks while also providing value to the company's bottom line with better control over premium costs and the possibility of a positive return on premium investments. The structure can take the form of a single parent, group/association, or segregated protected cells, among many others.

When assisting construction clients with creating risk management strategies, counsel should understand the risks and benefits of captive insurance and how it compares to and interacts with more traditional types of insurance used in the construction industry.

Listen as our expert panel provides an in-depth look at the use of captive insurance in the construction industry, discussing common uses as well as the benefits and risks to clients. The panel will also address regulatory concerns and offer best practices for structuring key provisions.