Coverage for a Construction Project
Sometimes, obtaining the right coverage for a construction project can seem overwhelming. Generally, there are two options: the traditional insurance approach and a consolidated insurance program (CIP), also known as wrap-up insurance. To adequately protect your project and team members, securing the right insurance is a necessity.
Traditional insurance requires each contractor on the project to provide their own insurance. They must include the cost of insurance in their bid. CIPs, on the other hand, consolidate insurance coverage for all project contractors into one handy insurance program. For most projects, the latter makes the most sense, but this can vary with each project and goals.
When you are looking for coverage for your next project, remember to consider the following points:
- The coverages and limits required for the project
- CIP advantages and challenges
- Traditional insurance complexities and potential gaps
In reality, it’s important to remember that each method has its own negatives and positives. The insurance that may work for a similar project may not be right for yours. Depending on your project goals, your qualified insurance agent should be able to advise you on which insurance option makes the most sense for the success of your business and project.
Whether you’re looking for insurance for your project, we can help. Contact a team representative at Nahai Insurance Services to discuss the most reliable insurance solutions for you and your project.