Construction & Real Estate Risk

General Contractors, Subcontractors, REITs, Developers, Owner-Managed

Large general, subcontractors and design build organizations use captive insurance companies and other alternative insurance programs to house and launch a broad array of risk finance strategies.

Captives can be especially relevant for organizations with difficult and specialty classes of risk.  Real estate investment trusts, developers and management company operators have many of the same risk considerations during project specific phases of operations.

Variables that drive captive formations for construction contracting and development operators may include:

For many large contractors and nationally risk diverse clients, a properly structured captive or other alternative insurance program can be a powerful tool to:

Terror risk becomes more relevant to large firms with heavy concentrations of human and infrastructure capital.  Traditional market coverage for this catastrophic scenario contains important exclusions or may be unavailable.  A captive can access Federal backing (via TRIAE) for very high limits of terrorism coverage that a direct insured cannot otherwise access.