A multi-billion dollar contractor was looking for ways to cut costs and improve profitability in light of recent economic conditions. Brown Smith Wallace worked with this client to establish a captive insurance company. We helped set up the captive to serve as a reinsurer to cover the layer previously retained via a large deductible policy. Our client was then able to document and capture all of its subcontractor risks in order to pass these costs on to subcontractors.

As a result, our client realized annual savings of hundreds of thousands of dollars and achieved a 20% reduction in insurance costs, stabilized their insurance budget, realized greater control over corporate deductibles, obtained direct access to reinsurance marketing, and improved claims handling and data collection process.

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