Consider These Common Business Issues
Owners and developers are always on the lookout for innovative ways to reduce insurance costs while maintaining effective coverages. As the cost of commercial, public entity, and residential construction is on the rise, saving money is especially important. The demand for comprehensive and efficient wrap-up programs is on the rise, which is where a single insurance program covers the job site risks for the project owner, manager, and all tiers of subcontractors. To help you select the right policy for your needs, take a look at these common business issues that contractors should be aware of when sponsoring a wrap-up program.
- Reducing Costs
A wrap-up program includes Workers’ Compensation and general liability insurance coverage. When it is structured properly, the wrap-up provides general contractor sponsors with reduced costs and an additional potential revenue stream that is an effective way to stay covered and reduce costs. The financial impact resulting from a well-structured policy can range between 0.25 and 1.5 percent of enrolled contract values, depending on a number of factors such as jurisdiction and claim results. Rolling wraps are designed to cover more than one project. General contractors can benefit from rolling wraps for project-specific risk management.
- Securing Project-Specific Limits
Project-specific wrap-up policies often provide more adequate coverage than those purchased under separate conventional commercial general liability policies. A wrap-up policy is also a great way for sponsors to reduce costs, especially for Workers’ Compensation coverage. For example, a project lender and owner can require the general contractor to provide project-specific limits of $100 million with completed operations coverage equal to the statue of repose for a $600 million commercial project. If the general contractor cannot meet this requirement, they can implement a combined line workers’ compensation and a CCIP program for this project that is structured to provide $100 million in project dedicated limits for the owner, lender and all tiers of contractors, as well as providing completed operations coverage for the 10 year statute of repose period.
Whether you’re looking for wrap up insurance or individual insurance, we can help. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.