What You Should Know About Wrap Up Insurance as a Contractor
As a contractor, you know how important it is to understand your insurance coverage. When taking on a new project, wrap-up insurance can help you stay protected. A wrap-up changes the way liability and Workers’ Compensation insurance is procured for large construction projects. In essence, a wrap-up does exactly what it says – it wraps up all the Workers’ Compensation and general liability insurance for the onsite contractors, including the general contractor or construction manager, as well as the owners of the project site. The premium for the insurance is paid for by the owner and, as a result, the contractors reduce their bid prices by the cost of their own insurance.
Benefits of Wrap-Up Insurance
There are significant benefits to choosing a wrap-up insurance policy over a conventional policy. Take a look at just a few benefits below:
- The insurance can give you more control over the risk coverage that you carry on a project.
- All insured parties are on the same policy, meaning there’s no need to assign responsibility for third-party liability or property damage.
- Subcontractors are provided coverage for multi-family construction projects, which are often excluded on individual subcontractor policies.
- A wrap-up policy expedites the claim handling process, meaning there are potentially lower legal claims for owners, contractors, and subcontractors.
Wrap-up insurance also allows large projects to maintain coverage. Often, it can be time-consuming and difficult to find coverage for an extensive construction project. By being able to underwrite large projects, insurance companies can easily spread their risk among the large numbers. Wrap-ups can work to reduce the ultimate construction cost of the project and be an excellent tool that provides quality coverage that may not otherwise be provided by the contractors.
Do you have the right coverage? Make sure you do by contacting the experts at Nahai Insurance Services. We can assess your unique business and its unique risks, finding suitable coverage for your needs.