Companies in the construction industry face unique risks, from project delays & accidents to liability & property damage.
A company in this sector might form a captive or explore alternative risk transfer strategies for reasons 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 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 include targeted coverage in areas where traditional insurance might fall short.
Benefits and Outlook for 2025... & Beyond
Clients can expect significant savings delivered 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) currently show marked improvement and are poised to continue in that direction.
Looking ahead, the construction industry is well positioned 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 better financial performance, making now an opportune time to explore SRS 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 industry-specific risks such as project delays, equipment damage, and liability issues¬¬¬¬¬—all of which standard insurance policies may not adequately cover. This customized coverage 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 typically 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 support, and ongoing management), ensuring your captive aligns with your risk management goals.
Are there specific construction risks that are more effectively managed through a captive?
Yes. Risks such as subcontractor default, environmental liability, and professional indemnity are examples for which captives can 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 Islands
Georgia
Luxembourg
Missouri
North Carolina
Oklahoma
Oregon
Tennessee
Texas
Vermont
SRS owns or partially owns several different sponsored cell facilities across the globe with the aim of offering cell vehicles 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’ experience, SRS provides management and consulting services to a wide range of insurance company structures, from single-parent captives to complex commercial insurers and reinsurers. SRS has operations in North America, South America, Europe, Barbados, Bermuda, Canada, Cayman Islands, and South Africa.
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