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

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Tuesday, August 6, 2024

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

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.

Description

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.

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Outline

  1. Overview of captive insurance
    1. Types of captives
    2. Common uses
    3. How a captive operates
    4. Who should consider using captives
  2. Benefits and risks to construction clients
  3. Comparison to and interaction with "traditional" types of insurance
  4. Regulatory considerations
  5. Structuring key provisions
  6. Practitioner takeaways

Benefits

The panel will review these and other key considerations:

  • Why should construction entities consider the use of captives?
  • What types of risks can a captive insure?
  • How can counsel best incorporate captive programs into a client's overall risk mitigation/management scheme?
  • What are some common pitfalls in structuring captive insurance programs?

Faculty

Mead, Michael
Michael R. Mead, CPCU

Principal
M.R. Mead & Company

Mr. Mead is a well-recognized veteran of the captive profession. He was the former President of the Missouri Captive...  |  Read More

Nowakowski, Gregory
Gregory M. Nowakowski

Partner
Honigman

Mr. Nowakowski advises businesses on risk management strategy, alternative risk financing, regulatory compliance, and...  |  Read More

Sherman, Kenneth
Kenneth A. Sherman

Partner
Prince Lobel Tye

Mr. Sherman is an experienced construction attorney with significant construction transactional, consulting, and...  |  Read More

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You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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