Just a handful of the benefits that wrap-up insurance offers.
Wrap-up insurance programs streamline the coverage process and allow various contractors and subcontractors to be covered during the duration of the project.
As one of the main benefits of wrap-up insurance, the policyholder can enjoy saving their wallet. This benefit is derived primarily from the project owner’s bulk buying power, as it can purchase insurance coverage at a lower premium than if purchased piecemeal through individual contractors. Furthermore, wrap-up insurance is also more cost efficient because a single insurer is the control point for all claims and can streamline claims processing. Additionally, this insurance policy allows owners to isolate the risk associated with construction away from their core operation insurance.
Wrap-up insurance programs eliminate overlapping and duplicate coverage that are typical when multiple contractors buy their own individual insurance policies from varying insurers. Without a wrap-up policy, each contractor is protecting themselves from the same potential accident. Not only does this cause an issue for the contractors, but the respective insurance companies can dispute the claims and lead to expensive litigation. Wrap ups also ensure that there are no gaps in coverage so that the policyholder has the peace of mind that they are protected.
A wrap-up insurance policy is ideal for each contractor, but more coverage may be needed. Wrap ups can provide specialized coverages for the contractor. Comprehensive workers’ compensation and general liability insurance can be added onto the policy to provide a handy all-in-one policy to save time and money for both parties.
When it comes to your construction project, ensure that you’re in great hands. Securing the best construction insurance for your projects can be complicated, yet it’s critical. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.