Using Captive Insurance to Provide Liability Insurance for Contractors/Installers


A national building supply wholesaler looks to create comprehensive and long-term relationships with its’ contractor customers.  These deep connections lead to repeatable sales over many years.


Smaller contractors and installers can sometimes fall short of fully qualifying for needed general liability insurance.  Such limitations could prevent contractors from taking on jobs and consequently reduce contractors’ purchases.


The head of insurance for the supplier has found captive insurance to be a very effective vehicle to solve this business issue. He set up a captive a number of years ago to take on a portion of this general liability risk (the captive pays a significant percentage of the first $500K of claims).

Several years later, the firm identified that some of their smaller deck installers did not qualify for their insurance requirements. Through the captive, the firm offered the installers affordable insurance whose premiums could be easily be deducted from the payments to installers at the conclusion of the project.

The program has strengthened the relationship between the wholesaler and its’ contractor/installer base.


If you are interested in discussing if this is a solution for your company, please feel free to contact our office at 412-802-2600.  Thank you.

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