August 05, 2014

krwlogosmlResponse by Monte Jahnke, a Legal Expert from Kerr, Russell and Weber, PLC:

Because construction managers oversee but do not directly fabricate structures, they are often deemed ineligible for coverage under captive insurance programs for true construction companies. Yet many experience escalating levels of self-insured retentions and deductibles, partic

Important tax deductibility and policy issuance considerations must be addressed in single parent situations. Some construction managers can realize significant cost savings despite lack of making a deduction for the premium expense. Alternatively, such managers could work with others to form a group program.ularly with respect to their architectural and design professional liability exposures. Assuming a higher self-insured retention or deductible can reduce overall premium in some cases. A captive might be used to fund these obligations.