Your Guide to Understanding Wrap-Up Programs
Whether you’re a property owner, general contractor, subcontractor, or otherwise, understanding how wrap-up insurance programs work is vital to a construction project’s success. A wrap-up insurance program can affect almost every aspect of a contraction or renovation project, from bidding to managing. When you are considering a policy, here is what you should know.
Determining how much and what type of insurance you need can seem daunting. Each construction project requires careful consideration of insurance options available and the components of the project. Wrap-up programs can be complicated and demand extensive review before purchasing, so it’s wise to know your options before you secure a plan. Here is what you should consider:
- Address insurance in bidding
Before bidding for a project, ensure that information is clear to all parties that this project is using a wrap-up program and note who the sponsor is.
- Understand the project’s scope
Think about the site’s location and landscape. What is the expected duration of construction? Is it a large or mid-sized project?
- Be aware of coverage gaps
Make sure you have a thorough understanding of your coverages and how they relate with a wrap-up program. Know what your insurance covers and what it does not so that you know where your exposures lie.
- Purchase adequate limits
It may seem tempting to opt for low limits to keep your premiums low, but limits that are too low mean that you could be underinsured, leaving you with a hefty bill if you file a claim.
- Identify insured by status
Note exactly who is who – the general contractor, the subcontractors, and involved professionals.
- Understand governing state law
Your program should meet all state requirements. Fortunately, working with trusted insurance agents can ensure that you follow the rules and regulations so that your project stays covered.
Securing the best construction insurance for your projects can be complicated, yet critical. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.