Advantages of Construction Wrap-Up Programs
Project owners and general contractors will know that even just one project will involve a whole host of parties. To project a project, some parties may opt for individual coverage, meaning that there are numerous policies and insurers involved. This quickly creates the potential for unforeseen liability gaps to emerge. As an alternative to having each party obtain separate liability policies, project owners and general contracts can turn to a wrap-up insurance program to manage their risks.
Wrap-up insurance programs streamline the coverage process and allow various contractors and subcontractors to be covered during the duration of the project. Wrap-up programs can provide a number of benefits, including:
- Potential cost savings: Wrap-up programs are designed to reduce the overall cost of insurance for all parties involved. Wrap-up insurance is also more cost efficient because a single insurer is the control point for all claims and can streamline claims processing.
- Consolidated coverage. Wrap-ups eliminate overlapping and duplicate coverages that are typical when numerous contractors buy their own policies. Wrap-ups ensure there are no gaps in coverage as well as no overlapping policies.
- Higher limits: Most wrap-up programs have very high limits, meaning that there are adequate limits to cover the claim if a major disaster occurs to the project.
- Centralized safety and risk management: Program sponsors, the insurer, and safety professionals can maintain centralized safety and risk management services. In turn, this can reduce the frequency and severity of injury and property damage claims.
- Reduced disputes: By covering all of the parties on a project under one policy, wrap-up programs reduce coverage disputes and issues between insureds and insurance carriers for covered claims that occur on the job site.
At Nahai Insurance Services, we strive to provide quality insurance solutions for the construction sector and beyond. To get started on securing your needed wrap-up insurance, contact us today.
