We Know Real Estate/ConstructionWe Know Real Estate/Construction

Specialized Industries - Captive Management Solutions

Captive - Innovative Options

For Transferring Risk

Struggling with general liability insurance for completed work? It’s time to consider a captive.

If you are experiencing difficulty with your general liability insurance coverage, you’re not alone. Many insurance providers have simply chosen to no longer offer general liability coverage for companies engaged in any type of residential construction.

Even underwriters that still offer residential construction general liability insurance have substantially increased premiums while modifying their policies to reduce coverage. This challenge has forced many residential homebuilders, general contractors and commercial developers to investigate alternative methods to finance their risks, especially those associated with completed operations and construction defects. Many builders are now turning to captive insurance companies as a viable way to control costs.

Captive Solutions: Not Just for the Big Guys

While it may sound daunting, a captive is simply a closely held, special-purpose insurance company designed to collect premiums and provide coverage to a parent organization. Captives have been around since the early 1970s and have been used by many large publicly held construction companies due to their significant cost savings and operational control benefits.

In today’s highly competitive, margin-driven market, captives have proven effective for many regional builders with annual revenues as low as $75 million.

So how can you tell if a captive is right for you? Beecher Carlson can help you determine the best approach.

The Beecher Carlson Advantage

Beecher Carlson’s 27-year history with captive design and management for residential homebuilders delivers an exceptional advantage. We provide captive solutions that are:
  • Customized: We work with homebuilders and contractors to create the most efficient and economically feasible method to solve their specific insurance cost and coverage issues.
  • Coordinated: We combine the use of captives with insurance or reinsurance to create the most comprehensive programs.
  • Construction-Specific: Our team has specific residential construction insurance knowledge, which is critical to helping clients realize all the benefits of a captive.
  • Comprehensive: In addition to solving general liability problems, we can structure captives to provide additional coverage for issues such as home warranty, builders risk and excess. Plus, we can recommend policies that cover gaps in previously purchased general liability policies.