Wrap Insurance for Your Business
The construction of a building carries a number of risks to all parties, including the developers, building owners, contractors, and construction managers. Each of these parties will want to ensure they have the right policies in place to avoid having to pay for damage or injury claims out-of-pocket. Securing the right wrap-up insurance is important for everyone involved.
In some cases, the individual companies associated with the project will each purchase their own insurance. While this may seem like a good idea, it can create exclusion gaps in which risks are not effectively covered. Fortunately, one single policy can cover all parties and may even be able to reduce their overall risk.
There are two types of wrap up insurance policies to choose from:
Owner-Controlled Insurance Program (OCIP): The OCIP is set up by the owner of the project for the benefit of the builder or contractor to cover all listed contractors.
Contractor-Controlled Insurance Program (CCIP): The general contractor may use a CCIP to extend coverage to all the contractors and subcontractors signed up for the project.
Whatever wrap up policy works for your situation, there are plenty of benefits associated with this type of coverage, including:
- There isn’t any need to assign responsibility for third-party liability or property damage since all insured parties are covered by one single policy.
- More control over the risk coverages carried out on a project.
- More control determining appropriate limits on the policy.
- Subcontractors are provided coverage for multi-family construction projects (which are often excluded from individual subcontractor policies).
- Expedited claims handling process, which leads to lower potential legal claims costs for owners, contractors, and subcontractors.
You can choose which coverages you want for your project. The typical coverages included in a Wrap are:
- General Liability
- Excess Liability
- Builders Risk
You can also choose to include additional coverages, such as:
- Workers’ Compensation/Employers Liability
- Pollution Coverage
- Project Design Team Errors & Omissions
- Professional Liability
- Subcontractor Default Insurance
Other coverages can be added, depending on the specific project.
Wrap-up insurance provides the opportunity to reduce project costs while integrating state-of-the-art risk management programs. To get started on securing this coverage, contact Nahai Insurance today.