Companies in the construction industry face unique risks, from project delays and accidents to liability and property damage.
A company in this sector might form a captive or explore alternative risk transfer strategies that include:
The need for tailored risk management solutions to address the specific risks of construction projects
The desire for more stable and predictable insurance costs
The opportunity to gain direct access to reinsurance markets, potentially lowering the cost of risk
SRS leverages a comprehensive suite of tools and approaches to address these challenges, including captive formation and management, risk assessment services, and customized insurance program design. Our team works closely with construction clients to identify unique risk profiles, then crafts bespoke captive insurance solutions that provide coverage where traditional insurance might fall short.
Benefits and Outlook for 2024
Clients can expect significant cash savings through reduced insurance costs and improved cash flow management. Key Performance Indicators (KPIs) such as Total Cost of Risk (TCOR) and Return on Safety Investment (ROSI) often show marked improvement. Looking ahead to 2024, the construction industry is poised for growth, with captives playing a critical role in managing the evolving risk landscape. Companies partnering with SRS can expect enhanced risk management capabilities and financial performance, making now an opportune time to explore captive solutions.
Construction Practice Group FAQs
How can a captive insurance company help manage the unique risks in the construction industry?
A captive can provide tailored coverage for specific risks such as project delays, equipment damage, and liability issues that standard policies may not adequately cover. This allows for more flexible and comprehensive risk management.
Can a captive insurance solution help in stabilizing insurance costs for construction projects?
Yes, by directly controlling the underwriting and claims processes, captives can help stabilize insurance costs over time, reducing the volatility associated with commercial insurance markets.
How does SRS assist construction companies in setting up a captive?
SRS provides end-to-end assistance, including feasibility studies, domicile selection, regulatory compliance, and ongoing management, ensuring the captive aligns with your risk management goals.
Are there specific construction risks that are more effectively managed through a captive?
Yes, risks like subcontractor default, environmental liabilities, and professional indemnity are examples where captives offer more customized and effective coverage solutions.
What are the long-term benefits of using a captive for construction risk management?
Beyond cost savings, long-term benefits include enhanced control over claims, improved safety and loss prevention programs, and the ability to respond flexibly to the industry’s evolving risk landscape.
SRS Construction Practice Stats
45 single parent captives
5 cell captives
13 Group Captives
More than $250 million in annual premium volume
13 Active Domiciles
Alabama
Arizona
Bermuda
Cayman
Georgia
Luxembourg
Missouri
North Carolina
Oklahoma
Oregon
Tennessee
Texas
Vermont
SRS owns or partially owns several different sponsored cell facilities located globally for the purpose of offering a cell vehicle to the construction industry.
Construction Sectors Served
Architectural Design
Bridge Construction
Building Construction
Concrete
Demolition & Dismantle
Design-Build
Electrical
Engineering Services
Excavation
General Contracting
Heavy Construction
Heavy Rigging
Highway Construction
Industrial Construction
Lean Construction
Limestone Quarry
Masonry
Painting
Paving
Plumbing & HVAC
Production Plant
Residential Construction
Residential Remodeling
Roofing
Sheet Metal Fabrication
Strip Mine Excavation
Site Development
Underground Utilities
Steel Fabrication
Stone Setting
Insurance Programs We Manage
Auto Liability
Auto Physical Damage
Completed Operations
Employers Liability
General Liability
Home Warranty
Medical Stop Loss
OCIPs/CCIPs
Professional Liability
Structural Defect
Subguard
Workers Compensation
About Strategic Risk Solutions
SRS is the world’s largest independent insurance company manager. With over 25 years of experience, SRS provides management and consulting services to a wide range of insurance company entities, from single parent captives to complex commercial insurers and reinsurers. SRS has operations in the United States, Canada, Europe, Barbados, Bermuda, Cayman Islands, Latin America, and South Africa.
