How Construction Wrap-Up Insurance is Beneficial
Owners, developers, construction managers, and general contractors face a host of insurance uncertainties with every project. While no insurance program can eliminate every uncertainty, a controlled insurance program (commonly known as a ‘wrap-up’) can improve coverage while mitigating the total cost of insurance and risk transfer.
Most wrap-up policies of today include general liability and excess liability, however, other project-specific coverages like builder’s risk, professional liability, and more can be included. Without a wrap-up policy, each contractor working on the project would have to obtain their own insurance. A wrap-up means that the sponsor negotiates and purchases coverage for all eligible contractors working on the project. The credit is equivalent to the conventional cost of the coverages the separate parties would have been required to purchase in the traditional marketplace.
There are many reasons why a wrap-up policy is beneficial. We’re going to take a look at coverage, control options, and cost savings, in particular.
Wrap-up programs offer more specified protections with broader limits and provide quality protection for all enrolled participants. There is only one insurance carrier, meaning there is a reduction in litigation and an easier claims filing process.
There is assurance in the quality and stability in the insurance carriers, and enhanced protection of the programs sponsor’s assets.
Project-specific coverage can be included in these programs, which is particularly beneficial to large-scale operations. Furthermore, wrap-up policies eliminate the duplication and gaps in insurance coverage.
At Nahai Insurance Services, we strive to provide quality insurance solutions for the construction sector. Our advanced expertise allows us to successfully serve you and your projects. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for your project.